When to Buy Real Estate
Is Now a Good Time To Buy a Home?
Pacific Beach Real Estate, Mission Beach Real Estate, San Diego County Real Estate
Each year, millions of Americans achieve the dream of home-ownership. In fact, today homeownership may be more attainable than you imagined. Low interest rates as well as financing products and programs are making it easier for more Americans to purchase a home and enjoy the benefits of homeownership than ever before.
Here are some of the opportunities currently available to home-buyers:
Increased Affordability Due To Low Interest Rates: Today´s low interest rate environment makes it easier for buyers to afford a home. Lower rates allow folks to secure a lower monthly payment and to qualify for a larger, more expensive home. For example, a $250,000 30 year mortgage costs $313 less per month at an interest rate of 4.5% than at 6.5%. Or, for the same monthly payment of $1,500.00 for 30 years, a homeowner could finance $296,000 at 4.5% or $237,000 at 6.5%.
Availability Of Low Down Payment Loans: In the past, buyers typically needed to have a substantial amount of money available for a down payment. Today, many lenders are offering loans which require as little as 3.75% or if you are a verteran, 0%. For first time buyers, this gets them into a home sooner and eliminates the need to save a substantial amount for a down payment or to borrow the money from family or friends.
Down Payment Assistance Programs: In an effort to make it easier for Americans to become homeowners, many buyers may be able to receive down payment assistance through federal, state or local programs. Lenders and realtors are good sources for information about such programs.
In addition to these opportunities, homeownership also offers several advantages over renting:
Avoiding The Rising Cost Of Rent: No doubt about it... the cost of rent has been rising faster than the rate of inflation. In many cases, renting costs as much as or more than owning a home, especially when you factor in the tax advantages of ownership. For example, the average renter in San Diego for a 1 bedroom apartment is approximately $950 per month. This is the same amount a homeowner would pay each month on a $187,500 mortgage, assuming a 30 year fixed rate mortgage at 4.5%. Of course, if you need a 2 bedroom unit, the disparity becomes even greater.
Tax Benefits: The mortgage loan interest and property taxes paid each year are tax deductable. Not including the property taxes and only taking into consideration the interest, a homeowner with a $250,000 mortgage may be able to save as much as $5700 per year on his or her taxes.
When considering the advantages of homeownership, having at your disposal a well educated and experienced team to assist you is of critical importance. You are best advised to choose a real estate professional who understands the residential market and who has an established relationship with lenders who have the ability to tailor a specific loan program to fit your individual needs.