Now's the Time to Take the Plunge and Buy a Home

Potential homebuyers should take the plunge

Oct 6 2011 11:06AM

For those who are prepared to make a downpayment and get a home loan, now may be the best time to purchase real estate, according to MarketWatch.

Because interest rates have reached historic lows, those who qualify for the best rates can effectively cut their monthly mortgage payments by a significant amount. When these less expensive home loan payments are stacked up against quickly rising rent prices, consumers can easily see how their money may be best spent, the source explains.

In addition to being a worthwhile investment and more economical than paying monthly rents, home ownership can also serve to save individuals money in other ways. Homeowners can also deduct their mortgage interest payments on their yearly tax returns.

Home values tend to increase over time, and as such, those who buy now could see their investments grow exponentially. Furthermore, once equity in a home has built up over time, homeowners can use that as collateral for additional loans. While many twenty-somethings may not see the use of home equity now, in 20 to 30 years, that equity could help them pay for a child's college tuition.