With Mortgage Rates This Low, Should You Lock In? 3 Reasons Why Now Might Be the Time
Whether you've just finished school or you're on the market for a new place to live, investing in a home can be one of the biggest investments of your life. As a result, it can be difficult to know what the right choice is and if you're in a good position to make it a solid financial move. If you think the time might be right for you, here are some questions to ask yourself before making the big decision.
Do You Have A Down Payment?
There are a lot of numbers mentioned when it comes to the down payment, from 5% to cash only offers, but 20% is the ideal percentage to put down when it comes to buying a home. Because putting 20% down will enable you to avoid having to pay Private Mortgage Insurance (PMI), you'll be able to lower your costs of home ownership over time. While 20% isn't the be-all-end-all if you're ready to hit the market, it's worth re-tooling your budget to save up.
Will You Struggle To Make Ends Meet?
Lower mortgage rates can certainly improve your overall outlook for investing in a home, but buying a home can be financially debilitating for many people. While you'll be required to make your monthly mortgage payment, there will also be insurance costs, property taxes, home maintenance and other associated fees that add up. If you feel it's going to be a huge financial risk to sustain home ownership, it may be worth sitting down with the numbers to determine how much leeway you have.
Are You Ready For Ownership?
Home ownership is often considered a rite of passage as one gets older, but it's important to determine how a new home will fit into your current lifestyle and what will change. The costs of home ownership are usually higher than renting, and you'll have to take care of things like the yard and general home maintenance yourself. It might not be the best time if a home strongly imposes on your lifestyle, but if you're looking forward to domestic duties, it can be a step in the right direction.
The mortgage rates have been hovering at a relatively low rate for a few years, but it's important to know that home ownership is right for you before moving forward. If you're currently contemplating a home in your area, you may want to contact one of our mortgage professionals for more information.