If you are thinking about buying a home, but want to make sure you time the market right, we are talking to you. Home prices seem to have stabilized in most areas, and interest rates are incredibly low compared to even 4 years ago. Many buyers, especially first time home buyers, don't realize the role that interest rates play on how much they can afford. 

To put it into perspective, a mortgage a 30 year mortgage for 200k at 6.5% runs about $1264 for principal and interest only (you still have to add taxes, insurance). Compare that to the same 30 year mortgage for 200k at a 3.5% interest rate- your payment for principal and interest only will run about $898. That's a big difference- about $366 to the average buyer less for the same house with today's interest rates than interest rates from 4 years ago.

We can put it another way too. Roughly speaking, a 200k house at 6.5% interest rate would cost you about the same in principal and interest as a house that costs 270k, at today's low interest rates around 3.5%. Combine that with the amount home prices have dropped over the years, and you have perfect timing to purchase a home, or to move up to a larger home.

It's simple math- now is the time to buy.