Fayetteville Arkansas, University of Arkansas--Old Main Overview

Fayetteville Arkansas, University of Arkansas--Old Main Overview
Overview of Fayetteville, AR

Sunday, June 22, 2008

Now is a Great Time to Purchase a Home in NW Arkansas

It is a great time to purchase a home in NW Arkansas and here’s why:

The median home price in Northwest Arkansas is approximately $155,000 and there are well over 1,000 homes for sale for less than that. New homes, resale homes, condos, country settings, subdivisions close to work, and everything in between are available.

Prices have come down but may not come down much more. No one can accurately predict when prices will hit bottom and begin to climb upward again.

Interest rates are extremely low -- 6% or below for fixed-rate 30-year mortgages. Rates on 15-year mortgages are even lower.

Interest rates and sales prices of homes do not go up and down together so waiting to see if home prices will go lower could cost you more in the long run. For example, say you waited for the purchase price of a home to drop $10,000 but interest rates moved up by as little as one half of one point during this period. You would end up losing money because of the higher monthly mortgage payment you would be making over the life of the loan.

Rent payments can change substantially from year-to-year but a fixed-rate mortgage offers unbeatable stability.

A wide range of financing options is available for consumers in all price ranges. Lenders have plenty of money to loan to credit worthy homebuyers.

Many sellers are offering incentives to buy, such as help with closing costs or allowances for repairs.

Although local housing markets adjust periodically according to overall economic conditions, over the long term real estate has consistently appreciated.

Homeownership is a stepping-stone to personal financial security and is the single largest creator of wealth for Americans. Historically, home appreciation has risen 5-6% annually. At that rate, the value of a home doubles every 13 years.

Income tax incentives are considerable. The interest you pay on your mortgage and property taxes are deductible at income tax time.

Even better than the annual income tax deductions for interest and taxes is tax-free profit when you sell your home. Couples who own and live in their home for two years and then sell can keep up to $500,000 of the profit tax-free. (An unmarried owner can keep $250,000 profit tax-free.)

Tax-free profit can be repeated over and over. If the person or couple buys another home and lives in it home for at least two years, the same rules hold true when they sell again.

The intangible benefits of homeownership are considerable. Overall, homeownership strengthens communities. Homeowners tend to be active in charities, churches and neighborhood activities. Homeownership inspires civic responsibility, and homeowners are more likely to vote and get involved with local issues. Children of homeowners are generally better students, due in part to the stability in their lives.

All the above, plus the personal satisfaction of owning your own home should be more than enough to take action now. Homeownership is truly the cornerstone of the American way of life, and the fulfillment of the American dream.

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