Have you checked mortgage rates lately? Rates are still hovering at their lowest levels ever, making it a great time for many people to buy a home or refinance.
Today’s rates are incredibly low. And they have been low for so long that many people think they’ve always been at these levels. Or that they’ll always be this attractive. Not so! Historically, home loan rates have moved around a lot. In the early 1970s, mortgage rates were mostly between the mid-7 percent range and high 8 percent range. By the 1980s, mortgage rates at one point rose to more than 18 percent! Depending on when you purchased a home in the 1990s, your mortgage rate may have been in the 7 percent, 8 percent, 9 percent or even 10 percent range.
For those in the market for a home, today’s low rates represent a great opportunity to buy and lock in a low mortgage rate for years to come. Whether to buy a home, of course, depends on more than just financing costs, but they do play a large part in the decision. One of the benefits of homeownership is that with a fixed-rate home loan, your monthly principal and interest payments remain the same over the life of the loan. With renting, you’re subject to rent increases from your landlord.
If you’re thinking of buying your first home, now’s the time to talk to a reputable lender. The average downpayment for first-time home buyers nationwide is about 6% of the purchase price, according to the National Association of Realtors. There are a variety of low-downpayment and even some no-downpayment home loan programs available that can help reduce the amount of money you’ll need to bring to the closing table. There are FHA mortgages, designed for first-time home buyers and families with moderate incomes and the VA home loan program, an incredible financing option for active-duty military personnel and veterans.
Today, there are more financing options for first-time and move-up home buyers than ever. Even if you’re not sure if you qualify for home financing, now’s the time to work with a lender and see if one of today’s low-downpayment home loan options is for you — and how much home you can afford.
Ready to get started on a move? Curious about if there are any homes out there in your price range? Start your home buying journey with us. Our knowledgeable staff is here to guide you. Give us a call: (610) 660-4711.