Right now home interest rates are at an all time low. Did you know that with good credit, you can actually get 2.75% as a home loan interest rate? That means that you can buy more house for less money and that’s exciting news. The first house I bought in 2006, I paid 6.14% interest. In 2019, rates were down to 3.8% and we were thrilled. We believed that rates could not go any lower. Just goes to show you that the Bob Dylan some is correct and “that the times they are changin”.
Look how much more you can afford. Based on $190,000, this is what your payment would be:
2006 at 6.14% your payment would be: $1,156.30
2019 at 3.16% your payment would be: $817.54
2020 at 2.75% your payment would be: $775.66
That’s less than your average rent in Sierra Vista! The average home price is $190,000 which is also lower than home prices in either 2006 or 2019. As a First-Time Home Buyer this is the perfect time to buy. Here are some steps for you to take towards home ownership.
Talk to 2 or 3 lenders to see what you qualify for and what steps you need to take in order to buy a home. Get preapproved for a loan that you are comfortable with. Your REALTOR® can give you names of good lenders to check out.
Talk to a REALTOR® you trust who can help you look at homes that you will like and navigate through the purchase, escrow and home ownership process.
Look at a few homes and decide what you like and don’t like. What is the neighborhood like? Does the house have everything you need to make it a home? Let your REALTOR® know what you like as you go. This will help them help you find the right home.
Don’t make any major purchases during this time without talking with your lender. This can change the amount of the loan you qualify for significantly.
If you would like more in-depth information about our local market, talk with your local REALTOR ®. They will be happy to help you navigate the market. Make sure that they have the REALTOR® trademark next to their name to ensure that you are working with the best of the best.
If you would like to receive a free copy of the Mid Year State of the Housing Market Report, just text me your email. TXT 520-333-5350. The Report will explain what has happened in Real Estate so far in 2020 and what trends are emerging in the second half.