Benefits of Homeownership & Equity
Many of our local real estate markets are actually doing so well that there is a limited amount of inventory. Therefore this is another factor that assists owners and sellers. It is a sellers market so buyers must be ready to jump on the right properties. But even buyers could also benefit from this future growth. Building equity not only creates wealth, it creates opportunity. Opportunities are benefits that include:
- Tax deductions
- Eventual paid off home
- Fixed payments
- Pride in ownership
- You’re the boss
- Use of equity for future needs
Waiting For Rates to Drop?
Again, no one has a crystal ball and practically nobody expected rates to stay as low as they did for so long. So rates could possibly go down, but it is a very small chance of that. Rate driven borrowers can actually be their own worst enemy by sitting on the fence. Although rate is important, there are other very important factors to include in a mortgage decision.
- Good purchase contract terms
- Closing costs
- Right neighborhood & school district
- House layout for you
- Good houses go fast
Even though we are talking about rising interest rates, they are expected to stay historically low for quite a while. With increases on the horizon, it is important to remember we are just above record lows and borrowing costs are very cheap. Plus they are expected to stay low for a while. When it comes to buying a house, remember all facets of this important decision. The overall picture is key rather than trying to time the market for a possible rate dip. When you find the right house, you found the right house. Rates are what they are at that time and timing rates is like timing the stock market. That’s a tough one to do.
No Matter the Rates, Ownership is the American Dream
Even though we are mortgage lenders, we do realize not everyone wants to own a home. But ownership does have many opportunities no matter what the rate is. So even when rates have been 15% in the 1980’s, buying a home is a primary goal of families. Owning a home is a major part of the American dream. Financing dreams is what we love so much about our jobs. Give us a call to discuss if homeownership is right for you. If the mortgage rates trend is going up, it is a good idea to call today. Also check out mortgage products available by choosing “loan types” at the top of this page.