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The Difference a Year Makes for Homeownership

by | 22 December, 2020

From our friends at KCM

Over the past year, mortgage rates have fallen more than a full percentage point, hitting a new historic low 15 times. This is a great driver for homeownership, as today’s low rates provide consumers with some significant benefits. Here’s a look at three of them.
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Move-up or Downsize

One option is to consider moving into a new home, putting the equity you’ve likely gained in your current house toward a down payment on a new one that better meets your needs – something that’s truly a perfect fit, especially if your lifestyle has changed this year.
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Become a First-Time Homebuyer

There are many financial and non-financial benefits to owning a home, and the most important thing is to first

decide when the time is right for you. You have to determine that on your own, but know that now is a great time to buy if you’re considering it.

Just take a look at the cost of renting vs. buying.

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Refinance

If you already own a home, you may decide you’re going to refinance. It’s one way to lock in a lower monthly payment and save more over time.

However, it also means paying upfront closing costs, too. If you want to take this route, you have to answer the question: Should I refinance my home?

Why 2020 Was a Great Year for Homeownership

Last year, the average mortgage rate was 3.93% (substantially higher than it is today). If you waited for a better time to make a move,

Market conditions have improved significantly. Today’s low mortgage rates are a huge perk for buyers, so it’s a great time to get more for your money and consider a new home.

The chart below shows how much you would save per month based on today’s rates compared to what you would have paid if you purchased a home exactly one year ago, depending on how much you finance:

Bottom Line

If you’ve been waiting since last year to make your move into homeownership or to find a house that better meets your needs, today’s low mortgage rates may be just what you need to get the process going. Reach out to a local real estate professional to discuss how you may benefit from the current rates.