November is the time when we reflect on the successes and trials of the past year. I am thankful for the new drive through coffee shop down the street. Now I can get my Chai Latte with out chasing my kids around the store. My husband is supremely thankful for our kids learning how to cook their own breakfasts.
If you have thought about buying a home this year, you should be Thankful for the current real estate market. For real, it is a buyers market right now and a great time to take the plunge in to home ownership. Here are 4 reasons to be Thankful for the current real estate market:
Reason # 1: Interest rates are still at record lows
Mortgage rates have dropped 40 points since the start of 2016.
Even though they may increase soon, current interest rates on home loans are still at extraordinary lows. A 30-year fixed rate home loan is 3.75%.
The Federal Reserve is likely to start raising the rates soon, so we will most likely not see numbers this low for a long time. Home prices may still be high in some particular markets but you can save hundreds of thousands of dollars over the life of your mortgage if you lock in these low interest rates now.
Reason #2: Rents have skyrocketed
Homeowners have another reason to be Thankful, renting a house is REALLY expensive. According to Realtor.com “Rents outpaced home values in 20 of the 35 biggest housing markets in 2015.” In most cities, monthly rent is comparable to a monthly mortgage payment. Many times, rent is even more expensive!
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?
Heather Garriock, mortgage agent for The Mortgage Group
Reason #3: Down payments don’t need to break the bank
The biggest obstacle for most potential home buyers is the ability to pull together a 20% down payment. Thankfully, today there are a variety of programs to help home buyers.
The U.S. Department of Veterans Affairs helps service members, veterans and surviving spouses buy homes. The program is especially generous, often requiring no down payment or mortgage insurance.
The Federal Housing Administration guarantees a portion of home loans, which frees lenders to broaden their acceptance standards. With FHA backing, borrowers can qualify for loans with as little as 3.5% down.
Reason #4: You’ll reap major tax breaks
One of the most enticing benefits of home ownership is break you receive on your taxes. Uncle Sam throws out a bucketful of tax breaks every year to encourage more Americans to buy a home. The biggest one is that 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.
Remember, if you’re thinking of buying or selling your home or property, reach out to your local Coldwell Banker Premier Real Estate agent. Our expert team of Agents and Brokers are ready and willing to help you with your real estate needs.
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