Summer is filled with fun and vacations, but can also be a great time to knock out one of your biggest chores all year... moving. Yes, I know it's a dreaded word, but take a look at some reasons why this time of year may be the best for getting rid of a monumental task.
1. Interest Rates will Rise in the Near Future.
Long term mortgage rates may reach 6% by the end of 2015. Economists say the rise is due to strong economic growth and will not harm the economy. Regardless the cause, it is best to have a lower interest rate. At the current rate, a $300,000 purchased with 20% down and a 30 year mortgage will yield payments of $1,590 a month. However, at 6% this rises to $1,813 a month. A $200/month increase in payment not only affects the home that a buyer can qualify for, but also yields thousands more of interest paid over the life of the loan.
2. The Market is Balanced.
To the delight of homeowners everywhere, the housing market has stabilized in recent years. The statistics for 2014 reaffirm this fact and also provide great news about prices. The number of new listings in Arizona for the months of May 2013 and May 2014 have stayed roughly the same but the average new listing price has risen almost 10%. Since sellers now have more equity and plenty of homes to choose from, the benefits are seen on both sides of a move.
3. More Time to Move.
Summer is a time of leisure; the kids are out of school and people tend to take vacations. It would make sense to spend this less hectic season making a change, as schedules tend to be more open in the summer. When it comes to buying and selling a home simultaneously there can be many challenges that arise. From packing to day care, families simply have more availability during the summer months to make their schedules work. Sometimes it may be necessary to either extend closing or post-possess a home after the sale. The goal is to avoid a double move and make the process as easy as possible.
4. Down Payment Guidelines have Loosened.
20% is a prudent amount to put down on a home, but it not a requirement. This amount is only necessary to remove the need of private mortgage insurance. In recent years, conventional mortgages have lowered their down payment requirements to as low as 5%. This was done to accommodate first time home buyers. The FHA will insure loans with as low as 3.5% down, even those for homeowners who have been foreclosed or experienced bankruptcy. The Home in 5 Program even allows FHA buyers to have their down payment covered. There are also programs from the VA and USDA that provide 100% financing for veterans and individuals purchasing in rural areas, respectively.
5. Move Up Arizona Saves You Money on both Sides.
The costs of buying and selling a home can add up quickly. Dealing with several agents is both costly and complicated. With Move Up Arizona, the process is simplified and less money is spent. Our goal is to keep the stress of moving off of you and make the process seamless. Call today to see what options are available to you.
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