I want to purchase a house in vegas worth $150,000, its 10% down payment, I have $18,000 in the bank, should I buy now, interest is only 6.5 percent. If prices drop, wont inctrest increase?
thats like asking how long is a piece of string, if you are in a position to buy and be able to afford an increase in interest of up to 5% over the next few years then go for it, but that is what you should be prepared to do whatever the market situation, this is where people go wrong, they buy houses and don't allow for a possible interest rate rise.
If you are buying something that is going to leave you with no money to bail yourself out then don't do it.
