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In Atlanta new home prices are still overpriced? Should I purchase now while interest rates are low?

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In Atlanta new home prices are still overpriced? Should I purchase now while interest rates are low?

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  1. Keep this in mind.  If you buy a overpriced house at a lower interest rate is it easier to change the interest rate later or the amount you owe on the house?  The answer; unless you have a bunch of money in the bank you can easily dump into the house later, its normally easier to refi the house later to get a better rate.  People put to much emphasis on the interest rate on thier loan sometimes and don't think about how much they are borrowing or the deal itself.  Most people don't think that the best way to lower thier payments is to pay down more on their principal balance.  Personally, I would pay 18% interest on a property that was a great deal than 5% on a overpriced house simply because I would have more options available.  If something went wrong after I bought the home, its easier to sell a house with plenty of equity in it than a house I paid to much for.  In order to get rid of it, I would have to find another person who wanted to overpay for a house and then you would have to compete with the other houses in your area that are for sale at a lower price.  

    Truth is, there are just too many variables to give a simple answer here.  My advice is to concentrate on the price of the home and the deal you are getting rather than the interest rate.  Don't get me wrong, you want the best interest rate you can get but don't buy a house just because interest rates are low.  Over the last 5 years, interest rates have been at thier lowest in decades but we still have a huge foreclosure problem, right?  Thats because too many people bought houses that were overpriced with payments they really couldn't afford or the property value on the house they bought went down so much that it wasn't worth keeping.  Don't fall into the same trap so many americans are now paying for.

    Good luck.

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