Changes to lending guidelines hope to spur first time home buyer sales.
It’s a fact that buying real estate is one of the best investments you’ll ever make. Aside from the growth in equity that will add to your overall wealth, homeowners are entitled to certain tax benefits not afforded to renters.
That being said, there are new incentives available in 2015 that should give those who are “on the fence” about buying a home new reasons to consider.
1. Cost of Private Mortgage Insurance Is Dropping
Private Mortgage Insurance, or PMI, is required for certain loans obtained by home buyers using 3 percent (or less) of the purchase price of a home as a down payment. The premium is applied as a fee on top of your loan amount. Typically the cost of PMI equaled 1.35% of the total amount of the loan. The Federal Housing Administration (FHA) has recently announced they will drop the cost of PMI by nearly 38%. to .85%. This means the average home buyer can save up to $900 per year.
2. Interest rates are at a 20 month low.
Rates have been dropping the past few months and are once again below 4 percent. In fact, they haven’t been this low since the middle of 2013. This is a great opportunity for home buyers to maximize their purchasing power to get in to the home of their dreams.
3. Home prices are on the rise.
While as a home buyer you might think this isn’t great news, consider this: Purchasing a home while prices are on the rise gives you the opportunity to a near automatic increase in the value of the home you purchase. In some cases, even before the final close of escrow. This could mean you will already make money on your investment BEFORE you even make your first mortgage payment.
Otherwise, you’re still accessing one of the best investment and wealth-building opportunities available.
We are here to help you realize all of your real estate goals.
The Lichen-Hooper Real Estate Team provides a full-service experience for both home buyers and sellers. Our knowledgeable staff will guide you through your real estate transaction all the way through to your close of escrow and beyond. Contact us for a no obligation real estate needs consultation today.