Home ownership rates are the lowest they have been in the last 50 years. A large portion of Americans are still renting properties, instead of enjoying a home of their own. Consumer reports believe this is an issue because of a buyer’s lack of trust in their ability to purchase. It is still a long standing notion that a buyer needs 20% towards the cost of the home in order to move forward, but this isn’t true. With countless down payment assistant programs and closing cost roll-ins, a home buyer could move in with as little as a few hundred to a couple thousand dollars. It will take significantly less time to save that amount for your purchase than the popular “20% down” belief.
With interest rates at an all time low, home ownership in today’s market is a great investment. The money saved over a mortgage’s lifespan can result in tens of thousands of dollars, if not hundreds of thousands. Don’t wait to buy when interest rates soar again. With low interest rates, your monthly mortgage payments are at a significantly lower cost as well. With such a heated housing marketing, rental prices are soaring, and statistics are constantly showing that home ownership can be equivalent to your rental rate each month, if not less. Why get stuck in a small 2 bedroom apartment if you can move into a home for an equivalent (or lesser) rate, and own a 3 bedroom house with a great backyard?
There is also a fear that a home can keep you “stuck” or “rooted” to one place, without an easy transition out if you decide to move. Home values in the KC Metro have been steadily rising year after year, and this trend is projected to continue. The equity build up when it comes time to selling is going to be far more beneficial than if you put money into a rental and decide to move. The money from selling the property can then be used to purchase a new home.
Now imagine if you were renting a home for $1400/month. If your landlord is renting to make a profit, consider how much less you’d be paying on a monthly basis towards your mortgage if the home was yours. You wouldn’t be paying a landlord to profit off of you, you’d be paying a reasonable rate, and you’d get to call the property your own. If you’re curious what your mortgage might be, check out the mortgage calculator by clicking the link below – you might be happily surprised about the type of home you can afford to move into.