Mortgage Advice for First Time Home Buyers
According to a CNN blog on money issues, millennials aged between 18 and 35 years old make up 30 of the total US population. Since they are well educated, majority have student loans. At an average of more than 21,000 in student loans, most people would prefer not to buy a home. The aftermath of the 2008 recession left the vast majority of millennials thinking twice about buying a home. They actually prefer to continue living with their parents to save money and plan how to repay their outstanding student loans.
Living at home is now a more popular option. While at home, a person neither pays rent nor utility bills. Through this strategy, smart graduates are repaying their student loans, contributing to their emergency fund as well as saving up to purchase a home in the future. Millennials, as the blog refers to this group, are learned and they adjust quickly and swiftly to new products and concepts. Therefore, financials companies and lenders must also learn to be innovative and create sustainable, customizable and higher quality mortgage products.
There is a reprieve for individuals who are financially stable. If you have a stable source of income and you're already saving up for the down-payment, the best decision is to purchase a home right away. According to the current real estate market conditions, interest rates are at an all time low. However, rates are expected to increase towards the end of this year or early next year. Homes are also much cheaper hence a good opportunity to exploit. This means that buying a home now would cost you less money. Therefore, it is a wise decision to invest now in a mortgage right now.
First time buyers who have a good credit rating should opt for stable mortgage plans. Typically, a 30-year fixed mortgage plan is the best option because it offers low monthly payments. This is economical and affordable for most individuals. A good credit rating means that you will pay lower interest rates.