5 Benefits of Buying a House this Spring
It’s the spring buying season and you keep hearing that it’s a great time to buy a home.
But maybe the benefits of being a homeowner sooner than later aren’t entirely clear.
Here are some considerations
1. Rising interest rates. For the last couple years, interest rates have stayed at a historically low rate, making it less costly for you to own a home.
Let’s say you take out a loan of $200,000 over 30 years to finance a home purchase. If your rate is 3.9%, your monthly payment would be $943.
At an interest rate of 5.5%, that monthly payment would rise to $1,136.
But interest rates have been ticking up steadily and that rise is expected to continue during 2018, which will drive up the cost of homeownership.
So that potential for lower payments across the life of the loan is one reason there’s that sense of urgency in the real estate industry.
2. Building equity. Owning a home can help you build wealth over time. Your home grows in value when home prices in your city rise, for instance. And many home improvements also can increase the value of a property.
3. Creating stability. When you lock into a fixed-rate mortgage, your payments stay the same throughout the life of a loan. That means that you don’t have to worry about a landlord hiking your rent or finding yourself suddenly priced out of your favorite neighborhood because rents have risen so much. Knowing that you have the same fixed cost every month also helps you create realistic budgets.
4. Finding freedom. Homeowners love that they have the freedom to upgrade their home, landscape the outdoor space to their taste, and know that they don’t need a landlord’s permission to make décor changes. When a home is yours, you can paint that wall your favorite color, install a Jacuzzi, and even punch holes in the wall to hang a big-screen TV.
5. Establishing roots. The longer you live somewhere, the deeper your connections become to the place. You get know and rely on your neighbors, you care about and want to maintain the neighborhood, you can influence local issues, and you know that your kids can go to that great school down the street. Such benefits aren’t quantifiable, but they can make you feel good and secure. And that you’ve landed somewhere that feels like home.
If you’re considering homeownership this year, Liberty Bank can help you understand your mortgage options, the approval process, and how much you can afford. To review your mortgage options, contact a Liberty Bank loan officer at 773.594.6647.