3 Ways You'll Win When You Buy a Home This Year
1. Buying a Home Is a Great Investment
Several recent reports indicate that real estate is still a good investment, topping other options such as gold, stocks, bonds, and savings. Why? Real estate helps you build equity, a type of forced savings that grows your net worth. According to the latest Equity Report from ATTOM Data Solutions, as of the fourth quarter of 2020, 7.8 million residential properties in the United States are considered equity rich. Put more simply, these homeowners have more home equity than mortgage debt. If you want to start building your equity, put your housing costs to work for you through homeownership this year.
2. Mortgage Interest Rates Are Low
The Primary Mortgage Market Survey from Freddie Mac indicates interest rates for a 30-year mortgage have fallen since November 2018 when they hit 4.94%. In their latest forecast, Freddie Mac expects rates to remain low, leveling out to an average of 2.9% in 2021. When you purchase a home at a low mortgage rate, it will impact your monthly mortgage payment, giving you the opportunity to likely get more house for your money.
3. Investing in Your Future Pays Off
There are some renters who haven't purchased a home yet because they're uncomfortable taking on the obligation of a mortgage. What many renters don't realize, though, is the financial power of equity. As a homeowner, your monthly mortgage payment becomes a form of 'forced savings' you can reinvest later in life as you see fit. You can use it in a variety of ways, like to fund a loved one's education, move up to a bigger home, or start your own business. As a renter, you're actually growing your landlord's equity instead of your own.
Buying a home sooner rather than later could lead to substantial savings and long-term financial growth.