6 Reasons to Buy a Home in 2016...
Realtor.com shares 6 Stellar Reasons to Buy a Home in 2016. Read the article here
Reason No. 1: Interest rates are still at record lows.
"Even though they may creep up at any moment, it’s nonetheless a fact that interest rates on home loans are at historic lows, with a 30-year fixed-rate home loan still hovering around 4%
Reason No. 2: Rents have skyrocketed.
"Another reason home buyers are lucky is that rents are going up, up, up! In fact, rents outpaced home values in 20 of the 35 biggest housing markets
in 2015. What’s more, according to the2015 Rent.com Rental Market Report
, 88% of property managers raised their rent in the past 12 months, and an 8% hike is predicted for 2016."
Reason No. 3: Home prices are stabilizing.
"For the first time in years, prices that have been climbing steadily upward are stabilizing, restoring a level playing field that helps buyers drive a harder bargain with sellers, even in heated markets."
Reason No. 4: Down payments don't need to break the bank.
"Probably the biggest obstacle that prevents renters from becoming homeowners is pulling together a down payment. But today, that chunk of change can be smaller, thanks to a variety of programs to help home buyers. For instance, the new Fannie Mae and Freddie Mac Home Possible Advantage Program
allows for a 3% down payment for credit scores as low as 620."
Reason No. 5: Mortgage insurace is a deal, too.
"If you do
decide to put less than 20% down on a home, you are then required to have mortgage insurance (basically in case you default). A workaround to handle this, however, is to take out a loan from the Federal Housing Administration
—a government mortgage insurer that backs loans with down payments as low as 3.5% and credit scores as low as 580. The fees are way down from 1.35% to 0.85%
of the mortgage balance, meaning your monthly mortgage total will be significantly lower if you fund it this way."
Reason No. 6: You'll reap major tax breaks.
"Tax laws continue to favor homeowners, so you’re not just buying a place to live—you’re getting a tax break! The biggest one is that unless your home loan is more than $1 million, you can deduct all the monthly interest
you are paying on that loan."