#1 Reason to own a home
Recent reports, according to the National Association of REALTORS®, say rents are rising nationally at almost 5 percent has created many frustrated renters. Additionally Freddie Mac has said interest rates are going to be at 4.8 percent by next year and the myth that you must have a large down payment or at least fifteen percent to buy a home, frustration rises even higher. News like that is also curtailing some houses coming onto the Market, because the seller doesn’t think that they have enough money for a down payment for that move‐up house.
It’s more important to know what’s really happening not just what roomers are saying. Here’s a couple of examples.
Freddie Mac’s purchase of mortgages with down payments under ten percent more than quadrupled between 2009 and 2013.
Freddie Mac has said a person “can get a conforming, conventional mortgage with a down payment of as little as five percent, sometimes with as little as three percent coming out of their own pockets.”
So the whole concept that you need more of a down payment now than you did years ago is just not true. Frustrated renters are quickly realizing the #1 reason to own a home is still “paying rent is not a good investment.” Many are becoming first time buyers, and they want a house they can “grow into” not a home they will quickly grow out of!
Existing home owners are also realizing that waiting to sell is not a good option and are becoming move‐up house buyers. All have figured out it’s a better deal than anyone in the ‘70s, ‘80s, ‘90s, or 2000s got and are taking advantage of housing deals and mortgages with historically low rates.
If you’re looking for homes you can grow into with monthly mortgage payments under $1,000 choose a home from your county below and start packing!
If you are considering downsizing, moving up or relocating find out what your home is worth in the current market.