Top 10 Reasons to buy a Home

“Enough with the doom and gloom about homeownership.”– WSJ 9/16/2010

The Wall Street Journal on September 9, 2010 printed an article on the ten reasons to buy a home. I thought it would be advantageous for those people sitting on the fence to elaborate on each point made by the WSJ.

4. It will be yours.
Pride of ownership. The sense of accomplishment in owning your own home, raising a family in your home, and being a part of the overall community is the American Dream. It is the largest and most significant purchase of your lifetime and it is yours – you did it!

5. You’ll get a better home.
As interest rates trend up, buyers should realize that mortgage interest rates will have a more significant impact on their monthly budget than waiting to see if house prices fall even further.

6. It offers some inflation protection.
Unlike credit cards with varying interest rates, buying a home with a fixed rate mortgage establishes a set mortgage payment for the next 30-yrs. In the late ‘70’s, mortgage interest rates were as high as 18%. Most buyers opted for a variable rate mortgage and refinanced continuously as the interest rates lowered to the more traditional level of 8%. It is safe to assume that interest rates will again reach the “norm” since 4-5% mortgage interest rates is unprecedented.