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![Slaying the Largest Homebuying Myths Today [INFOGRAPHIC] | MyKCM](https://files.mykcm.com/2019/04/03102557/Slaying-Myths-ENG-MEM-1046x1477.jpg)
Have questions or want to get the home buying process started? Contact me, Troy Stavros with CornerStone Realty Associates today at 865-999-0925.
Spring has sprung in Knoxville, and it’s a great time to buy a home! Here are four reasons to consider buying today instead of waiting.
CoreLogic’s latest U.S. Home Price Insights reports that home prices have appreciated by 4.4% nationally over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.6% over the next year.
Home values in Knoxville will continue to appreciate for years. Waiting no longer makes sense.
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year fixed rate mortgage came in at 4.41% last week. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of Realtors are in unison, projecting rates will increase by this time next year.
An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
Some renters in Knoxville have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
Are you ready to put your housing cost to work for you?
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
But what if they weren’t? Would you wait?
Examine the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, greater safety for your family, or you just want to have control over renovations, now could be the time to buy.
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
Want to talk about your specific situation? Call or text Troy Stavros with CornerStone Realty Associates at 865-999-0925 today!
Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates have stayed near historic lows.
Sellers should realize that waiting to make the move when mortgage rates are projected to increase probably doesn’t make sense. As rates increase, the price of the house you can afford will decrease if you plan to stay within a certain budget for your monthly housing costs.
According to Freddie Mac, the current 30-year fixed rate is currently around 3.75%. With each quarter of a percent increase in interest rate, the value of the home you can afford decreases by 2.5% (in this example, by $10,000).
Freddie Mac predicts that mortgage rates will be closer to 4.7% by this time next year.
Sometimes the best way to know whether your current situation is positive, is to look at the history of that situation. So, I decided to take a look at the history of home costs. In other words mortgage rates and payments, over the last few decades. Here’s how it looks:
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Hot off the presses! My Summer 2015 Knoxville real estate guides for both buying and selling a home in the current market, are now available. These are full of great information to arm you with the knowledge to make an educated decision, whether you are considering buying or selling real estate in the Knoxville area. They are FREE to you, so just enter your information below and they will arrive in your email within a couple minutes. The information included in these guides is also applicable to other markets across the country, so feel free to share with friends and family. As always, don’t hesitate to contact me with any questions!
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The INFOGRAPHIC below charts the historical mortgage rates for 30 year mortgages over the last 40+ years. The 30 year mortgage rate is projected to increase by a full percentage point next year. The mortgage rate currently available is still well below the averages of the last 40 years. If mortgage rates rise by a whole percentage point, like they are projected to, it will have a significant impact on your monthly payment as well as the amount of home you can afford to buy. Read a recent article showing a detailed analysis of what that would look like here.
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