What's Your 2016 Game Plan?

With 2016 fast approaching, it’s time to get your game plan together and take hold of your living situation.  Whether you need to upsize, downsize, or stop renting, there are few economic indicators that suggest 2016 may be prime time.

Homeownership is exciting, but given the history of the housing market, it’s also understandably nerve-wracking to invest hard-earned money.  We always tell people to look to a few key factors: the cost of borrowing, alternative options, and the terms.  Luckily a few more policies in the home buying process are helping to make 2016 a good year to buy a home.

The Cost of Borrowing 

Most of us will be borrowing money and paying a mortgage on our homes.  There’s always going to be a cost associated with borrowing, and right now, borrowing money is pretty affordable.  Freddie Mac’s latest survey of lenders shows little change in the 30-year-fixed rate mortgages, which average 3.89%.

Alternative Options

Typically, if you don’t own a home, you’re renting.  With the ongoing low supply and high demand of rental units, rental rates are continuing to rise and show no signs of dropping.  88% of property managers raised their rents in 2015, while 68% of property managers predict that rental rates will continue to rise in 2016 by an average of 8%.  At least with buying, you get the equity on the home, you get the tax deductions when you write off the mortgage interest, and you’re investing toward your own asset.

Clearer Mortgage Terms

The Recent Truth In Lending Disclosure (TRID) implementation has called for crystal clear terms, upfront, at the closing table.  First time home buyers won’t be surprised by any fees or costs at the last minute.  This allows you to know full well what is expected of you and your financial commitment.

A plan is a plan–whether it’s a 5 month plan or a 5 year plan.  Life happens, and the current state of the market suggests that when it does, you won’t be out of luck.  As always, let us know how we can help set you up on the right path and come up with a plan that works best for you.