As part of the government’s effort to stimulate the economy, interest rates are among the lowest ever. We saw interest rates sweep lower and lower at the height of the pandemic, bottoming out to nearly zero. Nine months into the pandemic however, the other side of the pandemic is in sight—if not very close at the moment.
This is great news for the health of the world. Over 1,000,000 people have died from Covid-19 across the planet, and the US has had one of the heaviest tolls at a depressing 200,000 lives lost. In purely financial terms however, it may mean that the window of opportunity for low pandemic interest rates is passing.
It’s Not Too Late
While the lowest rates possible may well have passed us by, it’s not too late to enjoy comparatively lower ‘pandemic’ interest rates. Fear of a continued upset in the economy has depressed interest rates, and may extend the length of time you have to take advantage to them into 2021.
That doesn’t mean you should delay if you are in a position to buy a home or refinance your current one. It does mean, however, that there isn’t any reason to give up.
Invest in Property
Property values have largely stayed the same or even improved during this time. Struggles to pay rent have shown people the value of owning their own home versus renting, and many people are hoping to make their lives easier by either refinancing during this time or owning their own home.
This is especially the case for those who worry about the instability of landlords, who may decide to try and cash in on today’s stronger housing demand with a higher rent or more desirable tenants.
Don’t Skimp on the Important Things
If you’re planning to purchase a home, now is the best time to do it, but you shouldn’t simply rush into a home blind. If you purchase a home without getting it properly inspected, you may find yourself with thousands of dollars in repairs or even an unlivable home on your plate.
Never skimp on an inspection when purchasing a home—including having the title inspected. If the house is in perfect condition but the title of the home doesn’t actually belong to the person who sold it to you, you could be out hundreds of thousands of dollars with no way to get it back.
The job of a title company is to make sure these things don’t happen and to make sure you have compensation if a mistake does happen. That’s why choosing a title company is important, and why you should never “wave” your rights to a home inspection or a title company in order to close faster. You also have the right to choose the title company as the buyer, which you should take advantage of. By using inspectors and title companies to help verify the value of the home, you can take advantage of pandemic interest rates without losing big.
For more information or for help with purchasing or refinancing a home, reach out to Millennial Title today.