Financial Column

Why Now is a Good Time to Buy a Home

Before you dismiss the headline as media hype, let’s take an inside look at the reasons it may be a good time to buy a home… really!

Call it a perfect storm of factors converging to provide first-time and other homebuyers lots of opportunities. Here are six reasons to begin the search for your next home.

Interest rates are still low. Although fluctuation is always a possibility, mortgage interest rates are near record lows. The recent volatility in the stock market has further offset the fears that the Federal Reserve’s December rate hike created for the first quarter of 2017.

Rents have been rising. While it’s not good news if you’re renting, home buying prospects should look at rising rents as an opportunity to begin building equity in a home of their own. According to a recent rental market survey, nearly 90% of rental property managers raised their rent in the past year. Greenville is currently averaging $1 per square foot of living space and experts predict an 8% increase in rents during the next year.

In many major metropolitan areas, the monthly rent amount is comparable or in most cases more than a monthly mortgage payment. So, it’s beginning to make sense for a number of first-time home buyers to think about buying.

Home sales prices are projected to continue to rise. Throughout 2016, home prices climbed steadily upward. This trend has continued through 2017 due to an inventory shortage here in Pitt County, which has also been seen in many other cities with similar demographics to ours. Buying now would ensure that you get the best deal possible, even in a “seller’s market”.

Down payments are more manageable. Down payments are one of the biggest drawbacks that most first-time homebuyers face. In today’s market, however, there are a variety of lending program options available with reduced or 0% down payment requirements, as well as programs that actually “assist” with providing the borrower funds for the down payment when one is necessary.

Mortgage insurance rates are low. Mortgage Insurance has been reduced by over 35% on where it was a few short years ago on both conventional and FHA loans. Additionally, FHA tends to appeal to a larger mass of borrowers with their MI rate being preset, regardless of credit score.  The drop in their MI premiums, according to FHA, would bring 250,000 first-time home buyers into the market in 2017.

Tax breaks. Homeowners enjoy the benefits of tax deductions associated with their ownership. Unless your mortgage is $1 million or more, you can deduct the annual interest you pay on your home loan. Plus, homeowners can also deduct real estate property taxes and other home-related expenses. This reduces your tax liability and gives you more money!

Perfect time to sell. Current homeowners may want to consider listing their home for sale due to a lower inventory in our area which is allowing for the highest possible sale price. Due to the interest rates being low and the probability to get top dollar on your home, it may be the perfect opportunity to upgrade without spending any more monthly.  It is also a great time to downsize if that is your goal being able to have a lot of equity towards the next purchase which minimizes your monthly payments dramatically.

So, if you’ve been thinking about entering the home buying market, there’s no time like the present!  ALCOVA Mortgage will help you find the right mortgage for you!  We’re here to help!

Unsure if a mortgage is right for you?  Give us a call and we will explore your options even if it does not result in mortgage at this time.  We truly care about what’s right for you!

Our Mission at ALCOVA Mortgage

“To simplify the mortgage process and build long-term trust with every client.”

ALCOVA Mortgage was founded in 2003, born out of a Passion to Serve!  Since inception we have helped over 45,000 borrowers reach their home financing goals.  Our Greenville based team has over 100 years of combined industry experience. We offer a broad product range that includes FHA, VA, USDA, Conventional, Manufactured Housing, Reverse Loans, Home Rehabilitation, and an In-House Construction Products.  

Because residential mortgage loans have our full concentration and we treat every customer like family, our service levels are outstanding! Better than what you may find at a bank, credit union, or other financial institution.  We make it easy to do business with us— All of our initial consultations are done free of charge with no obligation.  We have several tools available to make your home loan experience as convenient to your schedule and lifestyle as possible, regardless if you prefer to work in-person, over the phone, or through the internet.  

Whether you are looking to refinance an existing mortgage for a lower payment, utilize equity in your home for an important purpose, or purchase a new home—we want to be your GO TO Lender!  If you have a challenging situation, we welcome the opportunity to work with you.  We are passionate problem solvers and our goal is quite simple — to help you reach yours.

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*Editors note: Column One of Three from Alcova Mortgage

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