Six Stellar Reasons to Buy a Home in 2016

According to Realtor.com, if you are planning on purchasing a home, 2016 is the time to purchase a home. Here are six home-buying reasons to ring in the New Year with a new home:

1. Interest rates are still at record lows. Even though the rates have gone up a little bit recently, they are still at historic lows.
2. Rents have skyrocketed. A 8% hike is predicted for rentals in 2016 by Rent.com Rental Market Report. Wouldn’t you rather spend your money toward owning your asset than handing your money to your landlord and never see it again?
3. Home prices are stabilizing. Prices of homes are stabilizing and restoring a level playing field that helps buyers negotiate with sellers.
4. Down payments don’t need to break the bank. The number one reason renters don’t purchase is being able to pull together a hefty down payment. However, with the variety of home loan programs, it is now possible to purchase a home with a much smaller down payment of 3% rather than the past normal 20%.
5. Mortgage insurance is a deal, too. If you decide to go with a lower down payment, mortgage insurance is required in case you default on the loan. However, the monthly payments and fees are lower with the FHA loan.
6. You’ll reap major tax breaks. Tax laws favor homeowners where you can deduct all of the monthly interest you are paying on your home loan. Homeowners can also deduct some home-related expenses, improvements and property taxes.

If you’re considering buying or selling a home in 2016, I’d gladly help pre-qualify you and if you are in need of a recommendation for a Realtor, I’d be happy to put you in touch with a local professional.

 

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.