Are you considering buying a home? Kimberly Dawn Neumann of realtor.com has called attention to several reasons why 2016 could be the year for you.
Interest rates are still at record lows – We now know that the interest rate has increased by 0.05 percent. While it may increase again later in the year, rates are still “at historic lows…30-year fixed-rate home loan still hovering around 4 percent.” It is also a far cry from the extremely high rates of the 1980s. The time to buy is now.
Rents have skyrocketed – Rent prices have increased dramatically in recent years. They are now higher than home values were in “20 of the 35 biggest housing markets in 2015.” Many property managers have also increased prices in the last 12 months with rent prices continuing to increase this year.
Home prices are stabilizing – Home prices are starting to remain steady for the first time after increasing for several years. As a result, buyers may have an advantage against sellers in most markets.
Down payments don’t need to break the bank – In 2016, being able to pay a down payment could be easier. There are several programs that can assist in your effort to make that down payment. Even with a low credit score, you may still have a chance of being able to afford a down payment on that house of your dreams.
Mortgage insurance is a deal, too – Smaller down payments may require mortgage insurance. Loans are available for this process. Fees have decreased in recent years, which means your mortgage will be less.
You’ll reap major tax breaks – Current tax laws give homeowners an advantage in the form of tax breaks including the possibility to “deduct all the monthly interest you are paying on the loan” as well as expenses you make to improve your home.
We at The Powell Group are here to help provide the information you need to buy or sell your home in 2016.
By Jason Michaels
(Picture used from realtor.com as linked above)