Key to Financial Success

With mortgage interest rates still historically low, and expected to stay low through the remainder of 2013, Bend Oregon home buyers have been asking area Realtor’s why they should consider getting mortgage loans if they have the ability to pay cash for homes. This is a valid question and one worth answering since making the decision to pay cash vs. financing a home is something that will have a long lasting affect on the home buyer for at least 15 to 30 years into the future. 

Why You Should Get A Mortgage Loan   

The number one advantage of obtaining a mortgage loan in 2013 is that with mortgage interest rates still very low, it very affordable to take out a 15 or 30 year mortgage loan and the home buyer can then use their cash in other investments instead of spending it all on a house. 
Getting a mortgage loan does come with extra costs including paying for the appraisal, various fees and title insurance; home buyers who get mortgage loans will also be required to pay for homeowners insurance and this could add a few extra thousand dollars per year to the homeowners annual costs for their home. 
Home buyers who want to purchase a home must be prepared for applying for a mortgage loan, before they step foot into a bank; being prepared involves having: good credit, steady employment history for at least 3 years or longer, 20% to 30% down payment and a payment history that shows they will be able to pay the mortgage loan back over 15 or 30 years. 

Is It Time To Consider Paying Cash For A Home?   

In the first quarter of 2013 close to 58% of home sales in the United States were paid for using cash. The percentage of cash home buyers has risen in the last year and it’s not surprising since more home buyers than ever before want to pay cash for a home and avoid getting stuck with paying for a home with a traditional mortgage loan especially if they have the power to pay for the home up front. 
Cash home buyers are also preferred over home buyers who have financing because, with a cash buyer there will not be any question if the home buyer has qualified for a mortgage loan or not and the cash buyer will ultimately have more leverage to even negotiate on the homes price since there will be no question about their buying power. 
To learn more about the benefits of paying for a home with cash or a mortgage loan contact me today for a free real estate consultation at: (541) 383-1426.