Making the Decision to Become a Homeowner… Next Year
The decision about when to buy a home may always be a tricky one, no matter what housing market or city you find yourself in. Many people would prefer to buy than rent because they want to start building equity in their home investment right away. But this may not be the best financial decision in the long run because of changing market prices and interest rates.
Paying rent for a year and then getting a much lower interest rate on your mortgage could result in a net positive to your bank account over the life of your loan, for example. So with all this in mind, why is next year – 2020 – the right time for you to buy a home? Read on to find out the answer to this all-important question.
1. Home Prices Are Slowing
Since the 2012 housing recovery, home values have been rising rapidly, perhaps to unsustainable levels. But now, this growth seems to be slowing. That’s good news if you’re planning to buy in 2020 because there’s a good chance your home will be more reasonably priced than you might have projected a year or two ago.
2. You’re Planning on Staying in Your Home for a While
Of course, what this also means is that the value of your home may not go up for some time. However, if you are planning to live in your home for five years, ten years, or more, you can enjoy your home and ride out the market correction. Things just might be on the rise again if and when you are ready to sell.
3. Mortgage Rates Are Low
This may be one of the most important reasons to consider buying a home now. Mortgage rates are lower than they have been in years. In the fall of 2019, Freddie Mac announced a loan rate of 3.49 percent for a 30-year fixed loan, down from 4.5 percent at the beginning of the year. They could drop even lower in 2020. A lower mortgage rate can translate into thousands of dollars in your pocket over the decades-long term of your loan.
4. Your Family Is Growing
Many people may be choosing to start a family in 2020. It’s a new decade and it could be time for a new chapter in your life. If 2020 is a year where you plan to get married or have children, then you may not want to put off buying your new home.
Buying a home the same year you start a family allows you to put down roots, letting your children grow up with consistency and making it easier for your family to become part of the local community.
5. You Have Access To Multiple Lender Quotes
The 21st century is the best time to buy almost anything, including a home. Why? Because the Internet allows you to compare options from the comfort of your own home. This ability applies to things like groceries and home appliances, but it extends to mortgages as well.
You don’t need to track down one lander and hope they are going to give you a competitive rate. With websites like Online Lender Search, just provide some basic information (no Social Security Number required) to get multiple free quotes on mortgages in your inbox. You may even be able to find a lower rate than that 3.49 percent advertised by Freddie Mac in minutes!
Finding a great mortgage rate couldn’t be easier. To see for yourself, visit Onlinelendersearch.com.
