Assessing Risk – When to Buy

Assessing Risk: When to Buy
My clients sometimes agonize over making decisions on buying or refinancing their homes. When is the best time to lock in the rate? If they act now, will the rate drop significantly in the coming months? Will it rise to a point where they regret not buying sooner? There are a host of reasons why people delay, some which are valid, and others which may end up costing them thousands.

The fact is, if you meet with me and you understand that a good rate is available and you can afford it, then you have your answer. Lock in. If a rate gains or loses an eighth, you’re gambling with a number that works for you now, but could slip away slowly.

Think about people who play the lottery, since that’s a topic that’s been in the news. If someone plays for years and finally wins several thousand dollars, has he really won anything, or did he simply break even after years of losing?

When assessing risk, it’s important to look at the big picture. Are you better off buying your home now at a fair rate or do you want to roll the dice and wait? If the rate slowly rises, how much time will you lose before buying your home? Months? Years? Is it worth the wait?

Waiting for a better deal that may or may not be right around the corner–especially when you already have a good deal right now–can come back to haunt you.

My job is to help you make the best decision based on your needs and the current market, among other factors. Call me at 617-965-1236 to talk about your mortgage needs and we’ll discuss whether or not now is the best time for you to buy or refinance your home. I look forward to answering your questions!

December’s Home Value Improver
Preparing for a Long Winter

If this week’s snow has you wondering what the winter will bring, here’s some insight from The Farmer’s Almanac: “So, what’s in store for this winter? The “Days of Shivery” are back! 
We are forecasting a winter that will experience below-average temperatures for about two-thirds of the nation. A large area of below-normal temperatures will predominate from roughly east of the Continental Divide to the Appalachians, north and east through New England. With a combination of below-normal temperatures and above-normal precipitation the stage will be set for the Midwest and New England to receive lots of snow.”

If this week was any preview, you’ll need to be ready for a snowy few months ahead. Here are a few tips to handle the weather:

1. Make sure the kids are properly layered with warm clothing. Keep pets indoors.

2. Buy a real snow shovel–not the plastic one on sale that is useless when snow turns to ice.

3. Weather-strip doors and windows.

4. Have ice melt and sand to keep walkways safe.

5. Repair roof leaks and keep branches trimmed if they present a danger to your home.

6. Insulate water lines along walls so pipes don’t freeze.

7. Install storm windows or cover in plastic from the inside.

8. Have your chimney and flue inspected to avoid fires.

9. Have a plan for snow removal if it’s too much for you to handle.

10. Watch for elderly residents. They are less likely to detect drops in temperature and more likely to develop sickness.

Let’s hope The Farmer’s Almanac is wrong, but from what we’ve already seen a few days before the official start of winter, it’s better to be safe than sorry. Stay warm!