7 Reasons to Become a Homeowner in 2021
At last, 2020 is over. It’s the start of a new year, and it’s time to make your resolutions. If you’ve been thinking of purchasing your first home, why not make 2021 your year? Here are seven reasons to become a homeowner:
Customize and Make Upgrades as You See Fit
If there’s anything we’ve learned in 2020, it’s that having a comfortable and thoughtfully designed home is more important than ever. When you own your home, you’re free to paint the walls, decorate in your own style, make upgrades or renovations as you see fit, or put a fence up for your dog. (Did you know: 33% of millennial homebuyers say the decision to purchase a home was driven by their dog. Compare that to 25% who cited marriage as their primary reason to buy a home.)
Rates Are Projected to Stay Low
According to the Mortgage Bankers Association, Fannie Mae, Freddie Mac, and other major industry sources, interest rates are expected to remain low in 2021. Freddie Mac predicts that rates will average at 3% for the year. Low rates mean you pay less in interest, allowing you to expand your budget and get more bang for your buck. Buying a home while rates are low could save you thousands of dollars over the life of your loan.
The Housing Market Remains Healthy
Unlike many other industries, the housing market has remained strong throughout the Coronavirus pandemic. In fact, between people fleeing dense cities, families moving to homes that better suit their needs, a telecommuting opening up more living options, 2020 was one of the busiest years we’ve had on record.
Grow your Equity and Borrow Against It
Money paid toward rent goes into the pockets of your landlord. However, when you purchase your own home, a portion of your monthly mortgage payment, known as the principal, will allow you to build equity in your home. Later down the road you can borrow against the equity in your home to pay for renovations, college tuitions, weddings, debt, or anything else that you would like.
Real estate consistently appreciates in value, meaning that your home is acting as an investment. On average, home prices have risen from 3-6% over the last 20 years, according to data analytics company Black Knight. Not only has buying a home proven to be a sound financial investment, it also provides stability for you and your family over the years.
Provide Stability for You and Your Family
When you purchase a home, you’re not only making a smart investment, but you’re also providing a stable place for you and your family to live. No need to worry about rent increases, or having your rental sold from under you. So, whether you plan to have fur babies, or children of your own, raising them in a home that you own can provide them the stability they need to flourish.
There Are Plenty of Low Down Payment Options
Don’t let the myth that you need 20% down on your home stop you from purchasing your first home. In reality, there are a ton of low down payment options, such as:
- FHA Loan- As little as 3.5% down
- Conventional Loan- As little as 3% down
- VA & USDA Loans- Starting at 0% down
Plus, we offer a variety of grants and programs to help qualified borrowers come up with enough cash to close on your new home!
If you’re ready to take the next steps toward buying your first home, let us help! Contact your local loan officer to get started.
< Go Back