Are you thinking of buying your first home? Now is the time to do it.
In years past, first time homebuyers have had to go to their parents for the hefty down payment required to buy a home. It is a lot easier to come up with a substantial down payment for a buyer who sold their home for more money than they owed the bank. But for aspiring first-time homebuyers, coming up with the down payment can be the largest obstacle towards buying a home.
Fortunately new lending options, such as FHA loans, allow for lower down payments. Buyers may be able to put down as little as 3% for a down payment using an FHA loan. Borrowers agree to a conventional 30-year fixed mortgage as well as to paying PMI, or property mortgage insurance, required with less than 20% down payment.
With the greatest obstacle to new homebuyers, the hefty down payment, out of the way there are many advantages to buying a home. In today’s market, monthly rent may actually be more than a mortgage payment. Experts say it’s more expensive to rent than it is to own in most major cities in the US.
Interest rates are at a historic low. These rates will be rising as demand in the market increases. Now is the time to take advantage of these low rates.
If you are considering buying a home for the first time in the next few years, waiting may actually cost you money. Between the increase in interest rates, and the additional cost in rent, first-time homebuyers could end up spending thousands of dollars more by waiting only a few years to buy a home.
We love working with first-time homebuyers. Experts in real estate in the San Diego area, The Jacobo Realty Group would be glad to help first time home buyers take advantage of these low interest rates. For more information please see our website www.JacoboRealtyGroup.com or email firstname.lastname@example.org.