Over the past year, mortgage rates have fallen more than a
full percentage point, hitting a new historic low 15 times. This is a great
driver for homeownership, as today’s low rates provide consumers with some
significant benefits. Here’s a look at three of them.
1. Move-up or Downsize: One option is to consider
moving into a new home, putting the equity you’ve likely gained in your current
house toward a down payment on a new one that better meets your needs –
something that’s truly a perfect fit, especially if your lifestyle has changed
this year.
2. Become a First-Time Homebuyer: There are many
financial and non-financial benefits to owning a home, and the most important
thing is to first decide when the time is right for you. You have to determine
that on your own, but know that now is a great time to buy if you’re
considering it. Just take a look at the cost of renting vs. buying.
3. Refinance: If you already own a home, you may
decide you’re going to refinance. It’s one way to lock in a lower monthly payment
and save more over time. However, it also means paying upfront closing costs,
too. If you want to take this route, you have to answer the question: Should I
refinance my home?
Why 2020 Was a Great Year for Homeownership
Last year, the average mortgage rate was 3.93%
(substantially higher than it is today). If you waited for a better time to
make a move, market conditions have improved significantly. Today’s low
mortgage rates are a huge perk for buyers, so it’s a great time to get more for
your money and consider a new home.
The chart below shows how much you would save per month
based on today’s rates compared to what you would have paid if you purchased a
home exactly one year ago, depending on how much you finance:
Bottom Line
If you’ve been waiting since last year to make your move
into homeownership or to find a house that better meets your needs, today’s low
mortgage rates may be just what you need to get the process going. Let’s
connect today to discuss how you may benefit from the current rates.
Source: Real Estate with Keeping Current Matters