2016 around may just be the perfect time to buy a new home. There are many factors that determine whether the timing is right for you to buy a home. Below you will find 5 key elements that play into why 2016 is the year that you find your dream home.
Interest Rates Remain Low For 2016
Interest rates may be slowly creeping up at the beginning of 2016 but overall still remain at an all time, historic even, low. A common thirty year fixed mortgage loan is still hovering around four percent. It is not uncommon to assume that interest rates may never see these low numbers again. In fact many current homeowners have seen mortgage rates, in their lifetime, as high as eighteen percent. The eighties were a notorious decade for impossibly high interest rates.
Rent Prices Have Increased
Another reason homeowners should be looking into purchasing a home is the cost of rent is increasing. Rent is outpacing the value of homes in up to thirty five percent of housing markets around the United States. In 2016 rent payments are said to see increases of upwards of eight percent. This is the perfect year to say good bye to landlords for good and say hello to a mortgage broker that can find you a home loan to match your needs.
Home Prices Are Stabilized
Rising home costs are said to be stabilizing in 2016. This will help to restore a common playing field for buyers looking capitalize on the opportunity. Even in the most heated home markets buyers should expect to see home values stay relatively stable over the course of the year.
Down Payment Are No Longer The Standard Twenty Percent
The biggest obstacle against home buyers of the past was the required twenty percent down. This was almost impossible to obtain for many people looking to buy a home. Recently mortgage lenders have loosened their down payment requirements and are allowing homeowners to buy homes with less down at closing with the addition of principal mortgage insurance, otherwise known as PMI. Even with a lower than average credit score mortgage brokers are able to secure home loans with three percent down.
Mortgage Insurance Rates Are Low
With lower down payments required a PMI is required until the equity in the home has reached twenty percent of the home loans value. With this said the rates being charged along with this insurance is relatively low making the payment overall reasonable.
There are many reasons that you should look into meeting with a mortgage broker today. Initial consultations and mortgage pre-approvals are free services offered by mortgage consultants every day. Find out how much house you can afford, determine a down payment needed, meet with a local real estate agent and begin your quest to homeownership in 2016 today.
Lady of the Lakes Real Estate is Livingston County’s premiere realtor; out of Pinckney, Michigan helping buyers buy and sellers sell homes that provide a recreational lifestyle including golf courses, lakes and the Huron river chain of lakes, throughout Brighton, Howell, Pinckney and the surrounding area. Find out more at http://www.ladyofthelakes.com.