Is Now The Time To Buy A House With Mortgage Rates So Low?

Buying a house can be a difficult proposition

, especially when the economy is in such a difficult position. However, there are some amazing deals, some historically low interest rates and new federal home buying programs that could help anyone interested in taking the plunge into home ownership.

If you are looking for the best fixed rate mortgage an FHA loan may be for you. The Federal Housing Administration(FHA) is reporting historic opportunities for potential home buyers. The challenge for those home buyers is twofold however: will the economy get worse; and, will interest rates go any lower. For example, the FHA reported that interest rates for convention 30-year and 15-year home fixed rate home mortgage loans fell in October of 2009. 30-year mortgages fell 13 bases points to 5.1 percent and 15-years fixed rate mortgages fell 15 basis points to 4.62 percent. Many of these mortgages were purchase money mortgages.

While it's great news that interest rates dropped in October, it is being reported that November interest rates on home mortgages were even lower. While these numbers have not been finalized yet, many home buyers are being influenced by the potential to save even more money in the long term. Anyone interested in a purchase-money mortgage might try to find the best fixed rate mortgage before they buy something. The challenge, of course, is that no one truly knows when the price will reach its lowest. As a result of the confusion, there was a 4.4 percent decline in the volume of mortgages during the month of November. About half the mortgages were purchase loans (also known as purchase-money mortgages) the rest were basically refinancing.

So, the question remains when is the best time to buy a house? Truly, the answer will differ from person to person, because each individual and family must take into consideration their own feelings on the matter. Trying to tie all the costs of a mortgage together (such as mortgage closing costs, escrow, broker fees, etc.) can be difficult, and only the home buyer will know when he/she feels comfortable with the purchase.

Any prospective home buyer who might be confused by average interest rates, purchase loans, refinancing and other real estate terms probably only needs to be concerned with the basics, such as:

- Is this house right for me/us?

- Do I think the price is affordable?

- Is this a good interest rate?

- Am I ready to own a home?

In the end, if the answers to these questions all come out positive, then the individual buying the house does not need to flip out if they miss out on .01 percent on their interest rate. If they had waited two months to buy the house, maybe the interest rate would be lower; however, the house also could be bought up at that time. It's important to get the best deal on a purchase money mortgage or refinancing, but it's vitally important to buy the home that will create happy memories for years to come.

by: J Chase

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