June is National Homeownership Month and the federal Housing and Urban Development agency (HUD) is celebrating with the theme,
“Dare to Own the Dream!”
We are offering four (4) great reasons to DARE buying a home today, instead of waiting.
1. Prices Will Continue to Rise
The latest Home Price Index reports that home prices have increased by 7.1% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.9% over the next year (2018) and home values will continue to increase for years. Waiting longer will cost you more money.
2. Mortgage Interest Rates Are Projected to Increase
Freddie Mac’s Survey shows that interest rates for a 30-year mortgage have remained around 4%. Most experts predict that they will begin to rise over the next 12 months. An increase in rates will impact YOUR monthly mortgage payment. A year from now (2018), your housing expenses will increase if a mortgage is necessary to buy your next home.
3. Either Way, You are Paying a Mortgage
There are some renters who have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage - either yours or your landlord’s.
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity. If you become a homeowner your housing cost will work for you.
4. It’s Time to Move on with Your Life
The ‘cost’ of a home is determined by two major components: the sales price of the home and the current mortgage rate and both are on the rise. And even if they weren’t increasing, would you wait?
Look at the actual reason you are buying and decide if it is worth waiting. Ask yourself whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations? If the answer is yes, maybe now is the time to buy. If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial financial savings.