Saturday, January 9, 2016
2016 - A Great Year to Buy a Home
Thinking about possibly buying a home this year? Well here are some reasons why 2016 may be the best time to purchase a home we've seen or may see again in quite awhile.
- Home prices are stabilizing. Values vary in different markets but generally we are seeing less appreciation in most segments including single family homes. This cooling off period presents great bargaining opportunities for prospective homebuyers to capitalize on.
- Interest rates are at record lows, around 4% for a 30 year fixed rate mortgage. Although they can begin to gradually climb at anytime they are extremely attractive now allowing more bang for your buck (more home for your monthly payment).
- Rents continue to climb. In 2015 rent increases outpaced home values considerably in most major markets and are forecast to increase by 8% on average for this year. It is costing many folks more in monthly rent than it would to have a mortgage and begin building equity into that housing cost.
- Down payments are affordable. Many programs like FHA, FannieMae and FreddieMac Home Advantage programs allow for only 3% down payments with credit scores as low as 620. Other Down Payment Assistance programs may also be available in some market areas. Closing costs may be negotiated with the seller contributing a good portion of that cost in order to finalize the purchase agreement.
- Tax benefits for home owners are still great. Homeowners can still deduct all of the monthly interest payments on a primary residence as long as that loan is under a million dollars. Property taxes and some home related expenses may also be deductible.
This may be the best time to buy a home.
Is 2016 the year that you become a proud homeowner?
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