We all know (or you should know) that mortgage rates have hit record lows. Most folks with decent credit scores can get near 4% rates on 30 year fixed conventional loans and even less on FHA loans. 5/1 arms are low 3s... which can make a lot of sense on a good condo or townhouse buy that will be cheaper than renting with some money down. Most people re-sell condos in about 5 years.
But, does it matter to you? Many still think they can't afford a decent place. Normally, I'm not too "pushy" with my friends about rates and property deals. However, a light switched on when a friend assumed you needed 20% down to buy a house. This not the case and I realized I assumed many of my friends understood what they could afford and the true costs of owning. We ask friends and clients to ask themselves the following: Can I buy, do I want to buy and does it make sense?
It turns out many friends are paying high rents for long periods of time when they could afford a great property that meets their needs. They just never really looked at the numbers with a professional. Several friends could afford to rent their current homes out and move up to a much needed (or wanted) larger space. Becoming a landlord is a little more of a leap but I feel everyone should accurately know all their financial options...including renting out their home.
Please feel free to contact one of our associate lenders Steve Dunnett, Loan Officer to understand your mortgage options.
Steve Dunnett, Loan Officer
NMLS ID: 755940
Call us to check out your property and neighborhood options 773-687-4646
All photos Eric Rojas and Robert DePalma Real Estate Brokers unless otherwise noted.