Buying a Home is More Affordable Than Renting in 66% of US Counties

Buying A Home Is More Affordable Than Renting In 66% Of U.S. Counties

According to #ATTOM Data Solutions’ 2017 Rental Affordability Report, #buying a #home is more affordable than renting in 354 of the 540 U.S. counties they analyzed.

The report found that “making monthly house payments on a median-priced home — including mortgage, property taxes and insurance — is more affordable than the fair market rent on a three-bedroom property in 354 of the 540 counties analyzed in the report (66 percent).”

For the report, #ATTOM Data Solutions compared recently released fair market rent data from the #Department of Housing and Urban Development with reported income amounts from the #Department of Labor and Statistics to determine the percentage of income that a family would have to spend on their monthly housing cost (rent or mortgage payments).

Rents have been surging faster than home prices in about 37% of the markets measured. Daren Blomquist, Senior Vice President of #ATTOM Data Solutions warns that rising interest rates could be the tipping point of affordability:

“While buying continues to be more affordable than renting in the majority of U.S. markets, that equation could change quickly if mortgage rates keep rising in 2017. In that scenario, renters who have not yet made the leap to homeownership will find it even more difficult to make that leap this year.”

Bottom Line

#Rents will continue to rise and #mortgage interest rates are still at historic lows. Before you sign or renew your next lease, meet with a #local professional who can help you determine if you are able to buy a home of your own and lock in your monthly housing expense.

For More Info Please Call Or Visit: www.celinavazquezrealtor.com

909-697-0823

Click Here For A Full Catalog Of Things To Consider When Buying A Home

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Have You Saved Enough for Closing Costs?

Sellers Have You Saved Enough for Closing Costs?

There are many potential #homebuyers, and even # sellers, who believe that they need at least a 20% down #payment in order to buy a #home or move on to their next #home. Time after time, we have dispelled this myth by showing that many loan programs allow you to put down as little as 3% (or 0% with a VA loan).

If you have saved up your down #payment and are ready to start your home search, one other piece of the puzzle is to make sure that you have saved enough for your closing costs.

Freddie Mac defines closing costs as:

“Closing costs, also called settlement fees, will need to be paid when you obtain a mortgage. These are fees charged by people representing your purchase, including your lender, real estate agent, and other third parties involved in the transaction. Closing costs are typically between 2 and 5% of your purchase price.”

We’ve recently heard from many first-time #homebuyers that they wished that someone had let them know that closing costs could be so high. If you think about it, with a low down #payment #program, your closing costs could equal the amount that you saved for your down payment.

Here is a list of just some of the fees/costs that may be included in your closing costs, depending on where the home you wish to purchase is located:

• Government recording costs
• Appraisal fees
• Credit report fees
• Lender origination fees
• Title services (insurance, search fees)
• Tax service fees
• Survey fees
• Attorney fees
• Underwriting fees

Is there any way to avoid paying closing costs?

Work with your lender and real estate agent to see if there are any ways to decrease or defer your closing costs. There are no-closing mortgages #available, but they end up costing you more in the end with a higher interest rate, or by wrapping the closing costs into the total cost of the mortgage (meaning you’ll end up paying interest on your closing costs).

Home #buyers can also negotiate with the seller over who pays these fees. Sometimes the seller will agree to assume the buyer’s closing fees to get the deal finalized, which is known in the industry as ‘seller’s concession.’

Bottom Line

Speak with your lender and agent early and often to determine how much you’ll be responsible for at #closing. Finding out you’ll need to come up with #thousands of #dollars right before closing is not a surprise anyone is ever looking forward to.

For More Info Please Call or Visit At: www.celinvazquezrealtor.com

909-697-0823

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Tips for Preparing Your House For Sale

Highlights:

• When listing your #house for sale your top goal will be to get the #home sold for the best price possible!
• There are many small #projects that you can do to ensure this happens!
• Your real estate agent will have a list of specific suggestions for getting your house ready for market and is a great resource for finding local #contractors who can help!
• For More Info Please Call or Visit My Website: www.celinavazquezrealtor.com
• (909)697-0823

Will Housing Affordability Be a Challenge in 2017?

Some industry experts are saying that the housing market may be heading for a slowdown in 2017 based on rising home prices and a jump in mortgage interest rates. One of the data points they use is the #Housing Affordability Index, as reported by the #National Association of Realtors (NAR).

Here is how #NAR defines the index:

“The Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national level based on the most recent price and income data.”

Basically, a value of 100 means a #family earning the median income earns enough to qualify for a mortgage on a median-priced home, based on the price and mortgage interest rates at the time. Anything above 100 means the family has more than enough to qualify.

The higher the index, the easier it is to afford a home.

Why the concern?

The index has been declining over the #last several years as #home values increased. Some are concerned that too many buyers could be priced out of the market.

But, wait a minute…

Though the index skyrocketed from 2009 through 2013, we must realize during that time the housing crisis left the market with an overabundance of housing inventory with as many as one out of three listings being a distressed property (foreclosure or short sale). All prices dropped dramatically and distressed properties sold at major discounts. Then, mortgage rates fell like a rock.

The #market is recovering, and values are coming back nicely. That has caused the index to fall.

However, let’s remove the crisis years and look at the current index as compared to the index from 1990 – 2008:

We can see that, even though prices have #increased, #mortgage rates are still #lower than historical averages and have put the index in a better position than every year for the nineteen years before the crash.

Bottom Line

The #Housing Affordability Index is in great shape and should not be seen as a challenge to the real estate market’s continued recovery.

For More Info Please Call or Visit: www.celinavazquezrealtor.com

(909)697-0823 

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