After the real estate slump several years ago, the property market is bounding back. But some prospective homeowners are still apprehensive. Skyrocketing mortgage interest rates left many people facing foreclosure and bankruptcy, but things are now looking up.
Friendly mortgage rates
Although many factors influence the prevailing interest rates, keeping a perfect credit score, putting a sizeable down payment, or using your home as equity can bring them down. To get the best rates on mortgage, Sandy residents need to avoid getting into large credit card debts or making significant purchases in the period leading up to the mortgage applications. Moving large sums of money from your account at this time raises a red flag leading to a failed mortgage application.
Make more substantial financial savings
It may appear as a sound financial decision to pay $1200 in rent as opposed to paying a mortgage of $1700, but in the end, it proves to be a mistake. It would only be a good decision if you save the difference. But most people don’t have the financial discipline to do so. Each rent payment is lost to you as soon as you pay it off; it does not improve your net worth. You’re building the property owner’s equity instead of your own.
A relatively risk-free investment
Properties make solid investments that withstand the economic upheaval without major declines in value. They also afford the owner peace of mind. With positive economic outlook, experts expect home values to improve, and along with them the portfolios of property owners. Owning a property gives the investor psychological satisfaction they cannot get from the stock market.
Renting out a guest house or extra bedroom helps with the mortgage payments, in case you fall on hard financial times. Home value increases significantly through the life of your mortgage loan.
Owning a home is a sound financial decision that grows your equity, affords you peace of mind, and serves as a potential source of income.