This week we have been hearing the buzz in the news about the government plan to bring interest rates down to 4.5% in order to prompt home buying and ease the housing crisis. Does this mean that you should take advantage of the new rates and buy that new home? The Wall Street Journal discusses the pros and cons of buying a new home with the lower rates.
While the drop in interest rates will translate to a major reduction in your monthly mortgage payment, it may not make sense for you at this time to use this reduction to buy up into a larger home. Homeowners need to be careful that they do not use the rate reduction as an excuse to buy more home than they can actually afford. Instead it may be smarter to downsize into a more affordable home with lower payments, particularly if you are unsure about your job security.
The Central Virginia real estate market offers many opportunities to downsize and take advantage of the lowering interest rates. In addition to lower payments a smaller home will also offer reduced energy and maintenence costs. If you would like to explore how this option might work for you, give me a call and we can look together at what Charlottesville area homes are available that could suit your needs and lower your expenses at the same time.