The reasons for buying a home in 2017 are the same ones that have always existed, the big difference in 2017 is that you will be able to do so more easily than in quite some time. If nothing else, buying your home allows you the freedom to do as you choose along with the privacy that is virtually unattainable in a rental. Additionally, money that you spend on rent is money that you will never see again, while money spent on ownership builds equity and provides tax breaks.
So the real reason to buy a home in 2017 is that you will be able to, and here’s why.
- Interest Rates
Currently there are some terrific interest rates available that can help make a mortgage more affordable. Although interest rates are low right now, they are expected to go up before year’s end.
Mortgages are predicted to be more widely available due to looser lending standards. The FHA will likely lower first-time home buyer fees, while Fannie Mae and Freddie Mac will begin backing larger mortgages. This should make it easier for customers in more expensive markets to get financing.
Housing prices are expected to rise during the coming year, and so rent. Buying a home now can provide an opportunity for equity building while stabilizing the amount paid each month. With a fixed mortgage there’s no fear of mortgage payments suddenly increasing, and the payments build toward the day when the mortgage is paid off. Also, with a tax code that allows the deduction of mortgage interest, property taxes and even some of the costs involved in buying the home, a home can increase the amount of income that’s available to pay for it.
Another item that could affect purchasing power for 2017 is the Trump proposal to cap student loan payments and forgiveness of them after 15 years of monthly payments. Although this has not yet been passed into law, the reduction of this debt could free up a significant amount of the financial burden that may have been preventing the purchase of a home.
If you are considering buying a home, now is an excellent time to do it, as prices are expected to continue to rise, and there is a real potential to build equity while enjoying the many benefits.