26 Jan 4 Reasons to Buy Your First Home
Why is it a great time to buy your first home? There are many reasons but here are four.
Record Low Interest Rates!
As of January 2015 ,in Minnesota, rates for a 30 year fixed mortgage are 3.78% and a 15 year fixed mortgage is 3.06%. The national average is 3.81% and 3.18%. If Minnesota’s lower than average rates aren’t impressive enough then consider that in August of 2014 rates were at 4.18% for a 30 year fixed mortgage and 3.29% for a 15 year fixed mortgage. For more information on interest rate trends please visit this helpful website hsh.com.
New Mortgage Loan Types
Freddie Mac and Fannie Mae will be offering mortgages with a 3% down payment! Freddie Mac and Fannie Mae are The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Both are mortgage companies and are Government Sponsored Enterprises (GSEs), which means they are backed by the government but they are not part of the government. These 3% down payment mortgages will be available to qualifying buyers. Some requirements are a credit score of at least 620 and complete documentation of; income, assets, and job status. Borrowers will also have to attend home ownership counseling. These loans will be perfect for first time buyers who don’t have a large lump sum of cash to buy a home.
Home Prices Are Low…but Rising!
Prices are still low but appreciation has grown by 5-7% from 2013 to 2014 alone. This makes now a great time to get into a home. Once you buy your home the appreciation will start working in your favor, gaining you money!
If you’re planning on buying a home check out our blog post “We want to move in 6 months, when should we start looking for a home?” This will give you a month by month break down of what to expect when buying a home.
Upcoming Spring Market
When it comes to Real Estate the spring market is always the busiest. A busy market means more selection of inventory and more competition. It’s not unusual to have multiple offers on a home. During the spring market it takes approximately four months from starting to look to closing.
For even more helpful home buying advice check out our Info for Buyers category under Sheryl’s Blog!
The Selling South of the River team is always happy to answer any questions you may have. Please call Sheryl Petrashek at 612-889-6496 or email at [email protected]