Over the last year, mortgage loan rates fell more than a full percentage point, hitting a new historic low 15 times. Low rates provided consumers with some significant benefits. Here’s a look at three of them.
1. Move-up or Downsize: One option was to move into a new home either smaller or larger, putting the equity you gained in your current house toward a down payment on a new one that better meets your needs – something that’s truly a perfect fit, especially if your lifestyle has changed this year. Frisco Texas homes for sale and Prosper Texas homes for sale were popular for move up buyers
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 you’re considering it. Look at the cost of renting vs. buying. Aubrey Texas homes for sale were popular for first time home buyers.
3. Refinance: If you already own a home, you may have decided to refinance. It’s one way to lock in a lower monthly payment and save more over time. However, it may have meant paying upfront closing costs, too. If you want to take this route, you have to answer the question: Should I refinance my home?
Here's why 2020 Was a Great Year for Homeownership
Last year, the average mortgage rate was 3.93% (substantially higher than it is today). If you waited for a better time to make a move, market conditions have improved significantly. Today’s low mortgage rates are a huge perk for buyers, so it’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 today’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
If you’ve been waiting since last year to make your move into homeownership or to find a house that better meets your needs, today’s low mortgage rates may be just what you need to get the process going. Let’s connect today to discuss how you may benefit from the current rates in the coming year of 2021.