Everybody dreams of their own place under the sun. Many are also setting aside that plan because of several reasons, be it economic or personal. However, the real estate trend is all pointing to one thing and it is gearing towards the sings that 2016 is good year to have that dream house.
First, interest rates on home loans are still on the lows. For those who are really planning and have been preparing, this is the right time to do it. A 30-year fixed rate home loan is at a very acceptable 4 percent, BostonGlobe reported.
Many would-be home buyers will greatly benefit on the low interest rate for a home loan. A family can save a huge amount of money in interest alone during the lifetime of the mortgage. Interest rate were at 18.5 percent back in the 80s, so there is a huge difference there.
Second good reason to have a home right now is the rent. Rental fees are shooting straight up and it is entirely opposite on home mortgages. Based on a study, home rentals have already put down home values in 20 of the 35 largest housing markets in the United States, Housing Wire reported.
Third, downpayments are relatively smaller compared before. Downpayments are considered to be a major obstacle required from a would-be homeowner. Now, several programs are in place to assist home buyers like a 3 percent downpayment and a credit score of just 620.
Fourth, prices are steadying in the housing sector of the real estate. Yes, home prices have gone up, but it has stabilized. Cooling period is in effect right now and gives a level playing field for buyers and sellers.
Most importantly, gain major tax breaks for purchasing a home in the year to come. New homeowners can deduct all the monthly interest on the loan, which can greatly affect their taxes.
