Financing Options That Can Help
in a Tough Housing Market
A Harvard study showed that: A person 65 years of age that had been a homeowner was worth 44times more than someone who had rented.
Staggering statistics ...
Both provide a convincing argument for homeownership. And it's a message that obviously resonates with many, as a Pew Research survey showed that 72% of renters want to own a home one day.
So, you have a large number of people that want to buy a home. But you also have a significant portion of those people facing some obstacles that prevent them from doing so.
How can those obstacles be addressed?
While the rise of housing prices may slow over the coming months,or even recede in some areas, it's seems unlikely that an answer lies within home prices alone. Historically prices have risen. Odds are, prices will continue that upward trajectory in the future, just at a slower pace.
The number of homes for sale on the market will most likely rise in the future too. That theory is supported by the percentage (82%) of millennial homeowners now reporting that they are currently making home improvements with that goal in mind. Their updated homes will be listed and available for purchase at some future date.
But fact is, the individual home buyer does not command the housing market. They're not in the driver's seat when it comes to housing availability nor do they control housing prices either. However, they can influence the interest rate and loan programs that they personally qualify for at the time they choose to buy/refinance and apply for a loan.
It's important to share this message: Those financing a home hold power over the interest rate or mortgage programs available to them.
To a large degree, they remain in control of their financing destiny. With time and effort, they can "stage" and position themselves into maximum effectiveness as borrowers applying for loan.
What's their end goal?
To create as many options as possible for themselves. Those options are earned by:
- Building a good credit history
- Paying bills on time
- Saving money
- Not over-spending
- Spending wisely
- Eliminating debt wisely
- Consulting with a lender
- The greater the down payment percentage: The lower the PMI payment is...
- Credit Scores: Credit scores affect the cost of private mortgage insurance. The higher the credit scores, the lower the PMI is...
- Two forms of Mortgage Insurance (MI) exist: Conventional Loan PMI and FHA Loan MIP
- There are multiple payment methods available for PMI: PMI can be paid by a borrower in one lump sum at the time of closing as part of the closing costs. In some instances, lender-paid mortgage insurance is also an option available to Borrowers.
Looking for mortgage financing answers, options, solutions, and experienced assistance?
Contact me! I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
