Figuring out when to buy a home is always a tough decision. You are probably wondering if the market will move up or down and if you are making a good decision. Unfortunately, no one can tell the future. However, you can make an educated decision based on several factors.
Below are some reasons for purchasing Florida real estate this year.
Reasons For Purchasing Florida Real Estate This Year
Mortgage Insurance Rates
FHA buyers have an added incentive to get off the fence. The monthly PMI charged for mortgages insured by FHA is being reduced by half of a percent. On a $100,000 loan, the mortgage insurance drops from $112.50 to $41.67 per month. On a larger $400,000 loan, it changes from $450/mo to $283.33/mo,..a $167 reduction.
Home Prices Are Trending Upward
In case you were not sure, the bottom of the market has come and gone in most areas. In fact, home prices are back on the rise in many communities. Why is this helpful information for home buyers? There is the opportunity to build equity quickly. Acting now means taking advantage of home prices that are still reasonably low with the likelihood for further growth.
It Is More Cost Effective to Own Than Rent
With rental rates continuing to rise, most find it more cost effective to purchase. First is the tax benefit. This may result in a huge difference based on your income level and amount of deductions. Additionally, you have the ability to accumulate equity sometimes immediately or over time, so it is actually an investment instead of solely an expense. When you compare the monthly cost and the other financial factors, home ownership is usually the clear choice.
Interest Rates Are Still Low
Interest rates are exceptionally low. Most people are obtaining rates below four percent. Home loan rates have a significant affect on monthly loan payments, so it must be considered. By getting a lower rate, you spend less money on a house or are able to get a higher priced house. Interest rates continually fluctuate, so you should act sooner rather than later to take advantage of this.
Home Buying Guidance in the Florida Area
All regions are unique. Even adjacent towns could have completely different home prices. It is essential that you hire an experienced and local professional to provide you with important facts. He/she may also offer other reasons for purchasing Florida real estate this year. Contact Eric Stier at Brentwood Construction & Remodeling (407-332-8900, eric@brentwoodcr.com) for additional information on the real estate home prices and assistance with your real estate search.
