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 today’s low rates provide consumers with some significant benefits. Here’s a look at three of them.
1. Move-up or Downsize: One option is to consider moving into a new home, putting the equity you’ve likely 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.
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. Just take a look at the cost of renting vs. buying.
3. Refinance: If you already own a home, you may decide you’re going to refinance. It’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: Should I refinance my home?
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:
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.
Contact Tom or Ron for all your real estate needs and get all your questions answered.
Tom Johnson, Realtor – (303) 856-6185, firstname.lastname@example.org
Ron House, Realtor – (720) 308-5117, Rhouse01@msn.com
About Tom & Ron: As seen on HGTV's "House Hunters Family", Tom Johnson and Ron House make up a dynamic real estate team that proudly serves the Denver/Aurora metro area and Buckley Air Force Base. As veterans themselves, they bring a breadth of knowledge to the VA Loan process that differentiates them from their industry colleagues. Tom dedicated 21 years of service in the Air Force before retiring in 2009 from the Security Forces career field and Ron proudly served several years in the Army within a Military Intelligence Battalion. Together, they uphold the core values the military instilled in them. “Service before Self” and “Integrity First” is evident through all their real estate transactions. Those seeking real estate services will not find a more dedicated and knowledgeable team. Their unmatched communication and benefits they provide to their clients’ place this team on a pedestal all by themselves. They love what they do because of who they serve!
We look forward to serving you getting you moved into the perfect home that fits your wants and needs!