• Lower interest rates help home buyers

    The idea of getting a new home has been slipping through the fingers of many first time buyers because of the economy and the interest rates. In my opinion, a lower interest rate could offer buyers a chance to get serious about purchasing a home and it will help make communities around the country stablize too. So why not? It sounds like good business.

  • Yes it is

    A lower interest rate means that you can purchase a home that is worth more for the same price as a lower home value with a higher interest rate. The higher value of the home will usually translates to a higher selling price if the homeowner decides to sell the home later.

  • Lower interest rate does not justify a higher home price

    If you do the math, the low rates do not negate a higher home price. Running an amortization on a home of 250k for example at 4% shows you are actually paying more than if you did the same calculation for a 220k home at 5%. People need to educate themselves and negotiate the correct and fair price at the best rate to achieve the best deal.

  • No, not if the property is more than the consummer requires.

    No, a purchaser in toady's economy should buy according to their needs, not according to current interest rates. There are many variables that can change during home ownership, that could affect the homeowners ability to be able to meet their monthly commitments. Interest rates change due to circumstances beyond the homeowners control, and therefore upon renegotiation of the mortgage monthly payments may exceed what the homeowner is able to feasibly sustain.
    In my opinion, people are better off building equity in a home that is a right fit for their family, than overextending themselves on a more luxurious property because the rates were low when they bought.

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