Why is Buying Better?
With Rentals at an All-Time High, Buying is Better
It seems that these days there are many ways to go about choosing a home, but why not build wealth while you inve
st rather than paying someone else’s mortgage? Thanks to many sensible loan programs including first-time home buyer options, your choices are excellent. You see, when rates edge up, banks and institutions need your business even more, so they serve up creative enticements like longer-term adjustable-rate mortgages and federally-backed MDHC financing options.
How does this help the buyer, you may ask? Well instead of paying rack rate mortgages over 15 or 30 years, should you intend a more modified term, these loans generally offer significantly lower rates with a yearend cap and many offer low or no-cost refinance options so you can later plug into a fixed rate mortgage when the rates drop. Right now, trends are moving toward buy-down options where sellers may pay buyers’ points to buy-down rates or buyers can buy them down themselves.
First-time home buyers' products and those with exceptional credit, are sometimes offered expanded options with more favorable qualifications and often certain zip codes create additional opportunities for extra special financing terms. FHA and VA loans also provide choices including very limited down payment requirements with competitive rates and loan amounts that would surprise you!
Any way you slice it, you are building equity rather than paying out with no return. And with rental fees most often far exceeding home value, and unlimited yearly rental increases ?? why be gouged month after month? Just remember to ask a qualified realtor for their advice. They can help you to find a responsible lender who will work with you as you move in, move up, or the right size. You will be glad you did!
~LMC