The Difference a Year Makes for Homeownership

The Difference a Year Makes for Homeownership | Simplifying The Market

Over the past year, mortgage rates have fallen more than a full percentage point, hitting a new historic low 15 times. This is a great driver for homeownership, as todayโ€™s low rates provide consumers with some significant benefits. Hereโ€™s a look at three of them.

1. Move-up or Downsize: One option is to consider moving into a new home, putting theย equityย youโ€™ve likely gained in your current house toward a down payment on a new one that better meets your needs โ€“ something thatโ€™s truly a perfect fit, especially if your lifestyle has changed this year.

2. Become a First-Time Homebuyer: There are many financial and non-financial benefits to owning a home, and the most important thing is to first decide when the time is right for you. You have to determine that on your own, but know that now is a great time to buy if youโ€™re considering it. Just take a look at theย cost of renting vs. buying.

3. Refinance: If you already own a home, you may decide youโ€™re going to refinance. Itโ€™s one way to lock in a lower monthly payment and save more over time. However, it also means paying upfront closing costs, too. If you want to take this route, you have to answer the question:ย Should I refinance my home?

Why 2020 Was a Great Year for Homeownership

Last year, the average mortgage rate wasย 3.93% (substantially higher than it isย today). If you waited for a better time to make a move, market conditions have improved significantly. Todayโ€™s low mortgage rates are a huge perk for buyers, so itโ€™s a great time to get more for your money and consider a new home.

The chart below shows how much you would save per month based on todayโ€™s rates compared to what you would have paid if you purchased a home exactly one year ago, depending on how much you finance:The Difference a Year Makes for Homeownership | Simplifying The Market

Bottom Line

If youโ€™ve been waiting since last year to make your move into homeownership or to find a house that better meets your needs, todayโ€™s low mortgage rates may be just what you need to get the process going. Letโ€™s connect today to discuss how you may benefit from the current rates.

Content previously posted on Keeping Current Matters

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