I live in Los Angeles and I'm buying a home about 40 miles East of LA in Chino. The community is new and the home is brand new, but everyone says right now is a bad time to buy.

I'm buying the home for a great price: originally 422,000 cut down to 370K with all costs paid for by the builder.

I'm anticipating staying in this home for about 7-10 years.

What do you think about buying a home like this right now and what do you think about the housing market over all currently?
Mortgage Details:

100% loan:

75% of it is a 10 year fixed for 5.37%. After 10 years it becomes an ARM at 1+Prime or something like that.

25% of it is a 7 year fixed for 9.125. After 7 years it becomes an ARM as well.

Both have no prepayment penalties and we can refinance either at any time. We plan on refinancing the second one after a year or so to something a little bit better if possible.

You got a nice deal with the loans, if you are buying a home just to expect a return DO NOT DO IT buy if your intention is to live in it and have some tax benefits go ahead as long you can keep up with the mortgage and tax payments.

here's the deal....there is lots of inventory due to foreclosures; and while you are purchasing a new home...it sounds like you are getting a pretty sweet deal...but let's look at your loan...you didn't address that.

is your loadn an ARM? cause if it is ...you lose out on this deal?
make sure your loan is a fixed rate, with no prepayment penalties....wherther 30 year or 15 or? make sure fixed

other than that it sounds good.

Did you say you are buying builder direct? Or are you using an agent? Either way, it sounds like a good deal, but what are the comps in the area?

The market overall is definitely a buyer's market. This means that there is a lot of inventory out there. A little shopping around could save you some big dollars. There is a mystique about buying a NEW home which is irresistible to some buyers. In all actuality, you may find a better deal if you look at homes that are in the two to five year range.

Another advantage of a slightly older home is that you can see what the neighborhood is like. With a new community, you never know what kind of neighbors you will end up with...