Stop Waiting and Start Saving: 3 Reasons to Purchase a New Home Today
Are you tired of being stuck in a small apartment, dilapidated rental house or living in crowded quarters with friends or family? If you have been saving up and patiently waiting to buy a new home, it might surprise you to learn that taking the plunge into home ownership right now can save you more money in the long run. Home ownership provides a sense of security that cannot be obtained by renting or living with family. You can enjoy a comfortable, spacious new home while putting more money into the bank each month. Here are three ways that buying a new home right now can save you thousands of dollars.
Stop Throwing Away Money on Rent
Rental rates in many areas are higher than mortgage costs. Therefore, it is counter-intuitive to keep paying rent while saving to buy a home. You will never see your rent checks again, but your monthly mortgage payment will build valuable equity in your home. If you don’t have enough money saved for a down payment, there are many loan options that can help you afford a new home right now. The US Department of Agriculture, for example, offers loans with no down payment and the ability to finance up-front costs.
Reduce Your Maintenance and Utility Costs
Existing older homes and new construction are comparable in value, but a new home will save thousands in maintenance costs. Even well-kept older homes require costly maintenance and repairs, such as roof replacement, interior and exterior painting, and refinishing or replacing floors. Everything in a new home, on the other hand, will last a decade or more before it needs to be repaired or replaced. Newer homes are also more economical than older homes, featuring better insulation, tighter seals on windows and doors, and more efficient appliances and fixtures.
Take Advantage of Low Interest Rates
Purchase a new home now to lock in low interest rates while you can. Today’s interest rates are historically low, but you need to act fast. Economists predict that the federal reserve will raise interest rates slowly over the next several years. Buying or building at the current low rates instead of waiting until the rates go up will save a lot of money over the life of your loan. A rise in interest rates of just one percent can add up to thousands of dollars by the time your loan is paid in full.
Whether you want to lock in a low interest rate, stop the rent check cycle or lower utility costs with new, efficient features, there is no time like the present to buy a new home. A new home will improve your quality of life and allow you to put more money away for important things like vacations, emergency expenses, college or retirement. Get started on your journey to home ownership by researching your loan options and connecting with a real estate agent or home builder today.