If you are looking to buy a home, 2015 is the year to do so. What makes this year so special? Well, unlike in the years after the 2008 economic crisis, confidence in the housing market is rising amongst Americans.
Even though it is admittedly more difficult to buy a home now than it was in the past, the state of the current housing market implies that now is a good time to buy a home. However before you jump in, please talk to your real estate agent and loan officer to discuss the best options for you when purchasing a home.
Since 2014, mortgage interest rates have been on the decline. Generally, interest rates are lowered by the Federal Open Market Committee to help stimulate economic growth and encourage investing. Lower interest rates help with home financing, thus helping home buyers save money. When interest rates lower, real estate prices tend to increase because they affect the flow of supply and demand.
According to Zillow.com, “home values have gone up 3.0% over the past year.” Rising home prices means that your home will build equity. Home equity is found by subtracting the mortgage balance with the property value. So if your home is worth $100,000 and you have $30,000 left to repay, you have a home equity of $70,000. Home equity is also an important part of your net worth.
However, rising home prices can have a downside. While rising home values are good for sellers and homeowners who want to sell at a profit, it does mean that some potential homeowners will be unable to afford buying a home.
In the past, home buyers were often required to put down a hefty down payment on the home when they purchased it. Now, lenders are once again offering lower down payments for borrowers. Just remember that lower down payments can affect your Kansas City mortgage rates, leading to larger monthly mortgage payments.
Putting a home into a trust may seem like an option reserved for older homeowners who have paid off their mortgage and have accumulated an estate, including assets such as a home, motor vehicles, various investments, boats, rental properties, furniture and even a vacation home. However, having a home that’s owned outright is not necessary […]
The start of a new year is often seen as the time to make major changes in life. While many people resolve to start hitting the gym, losing weight, reading more, or making a career change, others may decide to buy a new home in the coming months. That’s a great goal, one that can […]
Buying a home is one of the most exciting events in a person’s life. A new home can mean a new direction, a major step forward, the beginning of a family or just a fun opportunity to live in a new state, city or neighborhood. It’s also a complex task that involves several important steps. […]
