{"id":35714,"date":"2013-01-25T13:37:33","date_gmt":"2013-01-25T18:37:33","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=35714"},"modified":"2013-01-25T13:37:33","modified_gmt":"2013-01-25T18:37:33","slug":"the-single-best-move-you-can-make-with-your-money-right-now","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/01\/25\/the-single-best-move-you-can-make-with-your-money-right-now\/","title":{"rendered":"The Single Best Move You Can Make With Your Money Right Now"},"content":{"rendered":"

Let’s not overcomplicate a very simple point about the U.S. housing market<\/span><\/span><\/a><\/strong>…<\/p>\n

The U.S. housing market is in recovery mode. That means buying a house is the single greatest investment you can make right now.<\/strong><\/p>\n

Last March, the average existing home in the U.S. cost $164,800. By November, it cost $180,600. That’s a jump of nearly 10%.<\/p>\n

And that’s just the average price<\/em>. There are much bigger moves in some local markets.<\/p>\n

Meanwhile, we learn that existing home sales rose 2.1% in October — to an annual rate of 4.79 million homes.<\/p>\n

And that home inventories — the total number of homes for sale — were lower than they had been since September 2005. (This means less supply and therefore even higher prices still.)<\/p>\n

Prices are up. Sales are up. Inventory is down. Again, you can overcomplicate it. But this tells me all I need to know. The crash is behind us. A recovery lies ahead.<\/p>\n

This on its own makes me “table pounding” bullish on real estate right now.<\/p>\n

But the story gets even better. Ludicrously better, in fact…<\/p>\n

That’s because on top of stupidly cheap prices in many areas… banks are offering you incredibly low interest rates to finance your purchase.<\/strong><\/p>\n

You’ve probably seen some variation of this chart. It shows mortgage rates going back to 1970.<\/p>\n

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As you can see, mortgage<\/span><\/span><\/a><\/strong> rates are the lowest they’ve been in over four decades. That means the financing to buy an American home is cheaper right now than it has been in over a generation.<\/p>\n

In the February issue of my wealth-building newsletter, Unconventional Wealth<\/em>, I recommend readers take immediate advantage of this situation. And I explain why historically low interest rates are potentially MUCH more lucrative over the long term than beaten-down prices.<\/p>\n

According to Bankrate.com, as of Jan. 14, the average 30-year fixed-rate mortgage rate was about 3.54%.<\/p>\n

But after speaking with one of America’s top-ranked mortgage brokers, I can confirm that qualified borrowers are tapping 30-year fixed-rate mortgages for as low as 3%.<\/strong><\/p>\n

So let’s see what kind of difference that 54 basis point spread would mean to you if you bought a house for the average price of $180,600 (as of November).<\/p>\n

At a fixed rate of 3%… and with 3.5% of the principal down… your mortgage of $174,279 would cost you $734.77 a month.<\/p>\n

At a 3.5% mortgage rate, your monthly payment would rise to $782.59.<\/p>\n

That’s a difference of $47.82 a month…or $573.84 a year. Of course, there are other considerations such as mortgage insurance. But you get the idea.<\/p>\n

If the 30-year fixed-rate jumps to 4%, your monthly mortgage payments would go up to $832.03.<\/p>\n

And what happens as house prices continue to recover?<\/p>\n

Well, if average house prices go up from $180,600 to $200,000… again with 3.5% down up front… a 4% mortgage works out at $921.41 a month.<\/p>\n

In other words, the $180,600 home you could have bought using 3% mortgage financing could become a $200,000 home you buy with 4% financing.<\/p>\n

It’s the difference between a $734.77 payment and a $921.41 payment.
\nThat’s an extra $2,244 a year out of your pocket — money you could be spending on renovating your house… on a vacation… on a college savings plan.<\/p>\n

Don’t throw this kind of money away. Act now.<\/p>\n

Start looking for deals on Zillow.com or Trulia.com. Pick up the phone and start calling realtors. Lock in ultra-cheap financing.<\/p>\n

Home prices are cheap. Financing<\/span><\/span><\/a><\/strong> is even cheaper. And the market is in recovery mode. I can’t be any clearer about it. Buying a home now is the single greatest investment you can make right now.<\/p>\n

Best Regards,<\/p>\n

Aaron Gentzler<\/strong>
\n Editor, Unconventional Wealth<\/em><\/strong><\/p>\n

P.S. To find out exactly how to benefit from the opportunity in the U.S. real estate market, check out Aaron’s latest recommendation to Unconventional Wealth<\/em> readers. Including how to get the bank to pay you<\/span> to borrow money. Find full details here.<\/span><\/span><\/a><\/strong><\/p>\n

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