Have you been thinking about buying a new house? Now is the time. Many factors have come together to make this year better than ever for home buyers. Consider these 6 reasons to buy a home in 2016…
- Interest rates are still at record lows – Back in the 80’s, home buyers saw interest rates nearing 20%. Today, we are still seeing 4% rates for 30 year fixed mortgages. With that awesome rate, that could rise at any moment, it’s an ideal time for buyers to take advantage of the savings.
- Rent prices are soaring – In 2015, most renters saw an increase in their monthly payments. In 2016, rent is predicted to rise another 8% according to the rent.com rental market report. “In most metropolitan cities, monthly rent is comparable to that of a monthly mortgage payment, sometimes more,” says Heather Garriock, mortgage agent for The Mortgage Group. “Doesn’t it make more sense to put those monthly chunks of money into your own appreciating asset rather than handing it over to your landlord and saying goodbye to it forever?” (realtor.com)
- Buyers have an advantage – With home prices stabilizing, buyers are gaining more control. Previously hot markets are cooling a bit which is good news if you are looking to buy.
- Down payments are more affordable – Potential buyers often shy away from making the big move due to the large required down payment. Fannie Mae and Freddie Mac now have programs allowing for as little as 3% down payments and with credit scores as low as 620.
- Mortgage insurance isn’t as much of a concern – According to Realtor.com: “If you do decide to put less than 20% down on a home, you are then required to have mortgage insurance (basically in case you default). A workaround to handle this, however, is to take out a loan from the Federal Housing Administration—a government mortgage insurer that backs loans with down payments as low as 3.5% and credit scores as low as 580. The fees are way down from 1.35% to 0.85% of the mortgage balance, meaning your monthly mortgage total will be significantly lower if you fund it this way. In fact, the FHA predicts this 37% annual premium cut will bring 250,000 first-time buyers into the market. Why not be one of them?”
- Homeowners get a tax break – Unless you take out a loan on a home for $1 million or more, you are eligible to deduct all mortgage interest paid on your taxes as well as some home related expenses and property taxes. So look at your new home as more than a home, it’s a tax break!
Are you ready to make 2016 the year you find your next home? We are waiting to help you. Call us today @ 720-593-2014!