If you are currently renting an apartment, duplex or home, you may notice that over the last 5 years the cost of renting has drifted upward. Maybe not every year, but over the national average rents in Midwest have increased on average 4.1% for two bedrooms, 2.5% for one bedrooms, and 3.8% for studio apartments. source
This means that many young renters are turning into home buyers, they are realizing the cost of owning a home is more economic over time in a rising rent environment, and what you get for a mortgage exceeds that of what you get for rent.
New loan programs make even more affordable
New loan programs such as Home Ready and Home Possible are making it easier and more affordable for younger buyers to attain home ownership. With lower mortgage rates and lower down payments its a reasonable program that allows gift funds and down payment assistance.
Mortgage rates are low
Mortgage rates have been low for an abnormal amount of time. If you look at the history of mortgage rates you will see this. This has been a dominating factor in young home buyers making the big decision to become home owners. They realize that rent will continue to climb as real estate prices increase, but if they lock in at a low mortgage rate they can expect that payment to remain constant.
The benefit of equity
Equity is the amount of the home you own. It is the difference between what you owe on the mortgage and what the home is worth. If your home sells for $200,000 and you owe $100,000, you have $100,000 in equity. This is money you take home, something you cannot expect when you leave an apartment.
The take away
We’ve seen a large increase in young home buyers expressing an interest in home ownership. This is because they realize the benefits. Buying a home can be an intimidating process and it’s important to shop for the best mortgage
interview several loan officers and be transparent, most will want to help you get the best possible deal their company can offer. Fortunately you can contact me directly to get a quote and see how our family owned company differs from the competition.
What Can I Do Now?
You can Sign up for mortgage rates here
Read the About me section and learn more about how I conduct business
reviews are a great way to see who you are dealing with
if all that checks out you can apply here
- C) 920-530-4484
- O) 920-490-8823
- F) 920-490-8967
909 . E Walnut Street
Green Bay WI 54301