Sunday, August 19, 2007

Buying Real Estate: When is it right?

As my mother and sat in the living room of their home of 32 years, she took the time to talk to me about the advantages of home ownership. We had been watching a news report about the real estate market and how rough things appear to be at this moment in time. When she and dad bought their home it cost them in the ballpark of $30,000 - $50,000. Of course, with the interest they probably paid three times that for the house. Regardless, she was happy they never took the opportunity to refinance it; they knew just how much they would be paying each month and their interest rate never changed. Today, it's hard to tell what interest rates will be, but one thing is for sure, their house belongs to them!

When is the right time to purchase a new home? Or your first home?

What type of interest rate should you choose? Fixed, variable or ballon? Is that choice anymore?

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