We are in the last quarter of 2015, and real estate prices are cooling along with the weather. So why is October a good time to buy a house? To begin with, mortgage interest rates remain low, despite talk over the last two years that they will go up. At 4% for a 30 year mortgage, more buyers can afford to purchase a higher priced home than when interest rates are at 6%.
Secondly, many buyers like to purchase a home towards the end of the year so they can take advantage of filing a Homestead Exemption on January 1st. If you purchase a home after January 1st, you have to wait until the following year to qualify and file for a Homestead Exemption, which is a 20% reduction on your property taxes! To learn more about this, please be sure to attend our annual seminar on Controlling the Costs of Home Ownership.
With all of the advantages of purchasing a home this month, October 3rd is also when the new mortgage reform went into effect. Be prepared for longer closings in contracts and potential delays. Before October 3rd, a typical purchase with a loan could close within 30 days. With the new TILA-RESPA Integrated Disclosure Rule, home purchases with a mortgage will take 45-60 days. For more information on the loan process, please click here or contact an Energy Realty agent.