Consumers are more easily living the American Dream of owning a home because of the incredibly low mortgage rates. Today, most buyers can get a much lower rate than their parents or grandparents got on their first home.
In a recent housing survey, FNMA released information about consumers’ thoughts on the current market. Almost two-thirds would rather buy than rent and believe that now is a good time to buy. Half of the respondents expect rent and home prices will go up.
Top Ten reasons to move the dream to reality:
- It’s cheaper than renting in most cases
- Avoid rental increases in the future
- Equity build-up with amortization of each payment going to principal
- A home is a forced savings account
- Appreciation increases your equity and your overall investment
- Mortgage interest and property tax deductions
- Home equity interest deduction
- A place you can call your own
- A place to share with friends and family
- Capital gains exclusion on profit
Buyers need the confidence that they can afford a home and proof for the sellers when they’re ready to submit a contract. If a buyer has steady reliable income, a good record of paying their bills, money saved for a down payment and are prepared to pay the mortgage each month, the next step is to get pre-approved by a trusted mortgage professional.
Take a look at the Rent vs. Own to see what the real cost of owning a home for your price range.