Suze Orman: 4 Key Signs You Should Buy a Home Now, Despite High Mortgage Rates
Are you considering buying a home but feeling discouraged by the high mortgage rates? According to money expert Suze Orman, now might actually be a good time to make that big investment. In a recent blog post, Orman shared her insights on why buying a home could still be a smart financial move, even with interest rates on the rise.
Orman emphasizes that while renting may be cheaper in some areas, buying a home can still be a better long-term decision if certain conditions are met. Here are four key signs that indicate you might be ready to take the plunge into homeownership:
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You Plan To Stay in Your Home for at Least 5 Years: If you foresee yourself living in the same place for at least five years, buying a home could be a wise investment. Over time, homes tend to increase in value, making them a valuable asset for the future.
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You Have a Healthy Emergency Fund: Before taking on a mortgage, it’s crucial to have a solid emergency fund in place. Orman recommends having at least eight months’ worth of living expenses saved up to provide financial security and increase your chances of securing a favorable mortgage deal.
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You’ve Saved Enough for a 10% Down Payment: While a 20% down payment is ideal, having at least 10% saved up can still put you in a good position to buy a home. Aim for the highest down payment you can afford to qualify for the best mortgage interest rates.
- You Can Afford a 20% Increase in Your Home Insurance Premium: With the rising costs of homeowner’s insurance, it’s essential to budget for potential increases in premiums. Orman advises estimating the cost of a comprehensive homeowner’s policy and adding 20% to prepare for any unexpected hikes in insurance costs.
By considering these key factors, you can determine whether now is the right time for you to buy a home, despite the current high mortgage rates. Remember, homeownership is a significant financial decision, so it’s essential to assess your readiness and financial stability before taking the leap.
For more financial tips and insights, stay tuned to GOBankingRates for expert advice on managing your money and making smart financial choices. And if you’re considering buying a home, Suze Orman’s advice could help guide you in the right direction.
