Reasons why 2016 is the best time to buy a home
Have
you been pondering about buying a home over the last few months? We all know
that buying a property is a big decision that needs to be given a lot of
thinking. As the New Year started, is
2016 the best time to buy a home?
Here
are the reasons why you should take the plunge and start owning your home in
the New Year:
Home Prices will slow down
Value of homes have been on the rise for
these past few months but in the first quarter of the year, prices are expected
to rise 3.5%.
This could mean that a lot of potential buyers over the next few months, only
of course this would benefit those who are in the position to take advantage of
the rates.
More homes for sale
The decrease of pace in home prices will
trigger more homeowners to list their homes and this will give potential and
interested buyers more option and choices. Plus builders are also targeting on
building started and mid-range houses that could increase home inventory which
makes it easier for buyers because of the demand for supply. There will be less
bidding wars and prices will ease up since there is no sense of urgency when it
comes to buyers.
Cheap mortgages could disappear
When
things go down eventually it will go up.
It is expected by the Federal Reserve for interest rates to increase soon, but
the rate does not mean it will spike up. It will be more of a slow or
gradual increase. In line with this, you will be likely to get the best rate
but of course the earlier you get the mortgage, the better.
Down payments are cheaper
Paying
a large chunk of down payment is one of the reasons why some potential home
buyers find it difficult to buy a home. However, with the most recent change
such as the new Fannie Mae and Freddie Mac Home Possible Advantage Program, buyers will be allowed to make a 3% down
payment for credit scores that are as low as 620.
Mortgage insurance is cheap as well.
You
can also get a deal when it comes to mortgage insurance. If you take out a loan from the FHA, the fees are as little as 1.35% to
0.85% of the mortgage balance. Now that is also a good benefit.
You will get major tax break.
Tax
laws are always in favor of homeowners, so when you buy a home you will also be
getting a tax break.
Rents will continue to climb
This
is another deciding factor that will encourage more people to buy homes. Rent is expected to climb in 2016 which
means that buying a home will become a better deal or investment.
Perhaps
2016 is the best time to buy a home since the mortgage rates are on its record
lows for quite some time now. If you have decided to buy a home, you can speak to a real estate professional to
assist you and guide you through your home buying process.
Comments
Post a Comment