Top 7 Reasons To Buy A Home
The Spring Market is just around the corner and if you’re still on the fence about homeownership, here are the Top 7 Reasons to Buy A Home:
- Rents Have Skyrocketed
- Interest Rates Are Still At Record Lows
- Down Payments Are Still Low
- Climbing home prices are finally stabilizing
- More Homes On The Market
- Low Mortgage Insurance & PMI Busters
- Reaping Significant Tax Breaks
Read about why you should take advantage below:
1. Rents Have Skyrocketed
According to Zillow’s latest real estate market report, rents outpaced home values in 20 of the 35 biggest housing markets in 2015. In the past 12 months, 88% of property managers raised their rent and in 2016 rents are predicted to rise an additional 8% reportedly by Rent.com’s 2015 Rental Market Report.
Remember, rental payments made to your landlord is money down the drain and gone forever with no long term benefit. But mortgage payments towards an appreciating asset not only have long-term but short-term benefits like tax deductions.
2. Interest Rates Are Still At Record Lows
The historically low-interest rates make mortgage payments in metropolitan areas comparable to rent. On Dec 2015, the Federal Reserve increased interest rates for the first time since 2006, which will increase borrowers’ costs and their monthly payments.
Taking advantage of the record low mortgage rates now will save borrowers money for years to come.
3. Down Payments Are Still Low
One of the biggest obstacles that prevent renters from becoming homeowners is figuring out how to save for a down payment. But today, that chunk of change can be smaller, thanks to a variety of programs. Fannie Mae and Freddie Mac Home Possible Advantage Program allows a 3% down payment with credit scores as low as 620; VA Loans have Zero down payment options and FHA programs allow a 3.5% minimum down payment.
4. Climbing Home Prices Are Finally Stabilizing
For the first time in 3 years, home values that have been climbing are finally stabilizing, helping buyers negotiate better deals with sellers, even in stronger markets.
5. More Homes On The Market
With the average yearly increase of home values slowing down, sellers will want to cash in on listing their homes. Not only will sellers be more motivated to sell their homes, but builders are also focusing on starter and mid-range homes – boosting the housing market inventory. More home options will help lower buyers’ chances of getting into bidding wars, making it easier to buy a home.
6. Low Mortgage Insurance & PMI Busters
The Federal Housing Administration—a government mortgage insurer that backs loans – dropped their fees down from 1.35% to 0.85% of the mortgage balance. VA Home Loans still have zero mortgage insurance even with a zero down payment, and conventional loan options finally have a no PMI mortgage option called the PMI Buster.
7. Reaping Significant Tax Breaks
Tax laws continue to favor homeowners, so unless your home loan is more than $1 million, you can deduct all the monthly interest you are paying on that loan. Homeowners may also deduct certain home-related expenses and home property taxes.
The reason for our post is to help empower first-time homebuyers to make the right decision when buying a home. Our affordability calculator and buy vs. rent calculator will help you make the right decision on selecting a payment that makes sense for you and your lifestyle. Remember pride of homeownership should never be at the cost of sacrificing happiness.
Get A Rate is our nations 1st and Only Non-Commissioned based Mortgage Bank and we welcome you to a new era of homeownership. An Era with truth, transparency and protection.