Top 6 Reasons to Buy a House or Home in 2016

Wow. I have to sit back and tell myself everyday. Is it actually 2016 already? For people who happen to be planning on purchasing a house in the brand new year– or merely trying to–there is a great deal to celebrate. Why? A number of factors this year have dovetailed to make this an ideal storm for home buyers to get out there and make an (winning) offer and finally allow them to buy a house in 2016. Here are six house-purchasing causes to be grateful while ringing in the new year:

Reason No. 1: Interest rates are still at record lows

While they might creep up at any moment, it is nevertheless true that interest rates on home loans are at historical lows, with a 30-year fixed rate home loan hovering around 4%.

“Recall 18.5% in the ’80s?” Inquires Tom Postilio, a real estate broker with Douglas Elliman Real Estate as well as a star of HGTV’s “Selling New York.””It’s likely that we’ll never see interest rates this low again. So while costs are quite high in certain markets, the savings in interest payments could easily amount to thousands and tens of thousands of dollars over the life of the mortgage.”

Reason No. 2: Rents have skyrocketed

Another motive home buyers are not unlucky is that rents are going up, up, upward! (This, on the flip side, is a rationale not to be grateful if you are a renter.) Actually, house worth were outpaced by rents in 20 of the 35 largest housing markets in 2015. What is more, as stated by the 2015 Rent.com Lease Market Report, 88% of property managers increased their rent in the last 12 months, and an 8% increase is forecast for 2016.

“In most urban cities, monthly rent is comparable to that of a monthly mortgage payment, occasionally more,” says Heather Garriock, mortgage broker for The Mortgage Group. “Does not it make more sense to place those monthly lots of cash into your own valuing strength rather than handing it over to your landlord and saying goodbye to it forever?”

Reason No. 3: House costs are stabilizing

For the very first time in years, costs which have been rising steadily up are stabilizing, restoring a level playing field that helps buyers drive a harder bargain with sellers in marketplaces that are heated.

“Local markets change, but usually we’re experiencing a cooling interval,” says Postilio. “At this moment, buyers get the chance to capitalize on this.”

Reason No. 4: Down payments do not need to break the bank

Probably the greatest barrier that keeps renters from becoming homeowners is pulling together a down payment. But now, that lot of change can be smaller, thanks to various systems to help home buyers. For example, the fresh Fannie Mae and Freddie Mac Home Possible Edge Plan allows for a 3% down payment for credit scores as low as 620.

Reason No. 5: Mortgage insurance is a also at a bargain

Should you make the decision to put less than 20% down on a house, you’re then required to get mortgage insurance (essentially in case you default). A workaround to deal with this, nevertheless, is to take out financing from the Government’s Federal Housing Administration–a government mortgage insurance company that backs loans with down payments as low as 3.5% and credit scores as low as 580. The fees are way down from 1.35% to 0.85% of the mortgage balance, meaning your monthly mortgage total will be significantly lower if you finance it this way. Actually, the FHA calls this 37% yearly premium reduction will bring 250,000 first-time buyers into the marketplace. Why not be one of these?

Reason No. 6: You Will reap important tax breaks

Tax laws continue to favor homeowners, so you are not simply purchasing a place to live–you are obtaining a tax break! The largest one is that unless your home loan is more than $1 million, you can deduct all the monthly interest you’re spending on that loan. Homeowners might also deduct specific dwelling- house property taxes as well as related expenses.