A recent MReport highlights financial advice on purchasing a home in today’s housing market. Elizabeth Renter, a data analyst for NerdWallet, wrote an article describing the ways prospective homebuyers can make the smartest decisions. Elizabeth wrote, “Buying a home can be intimidating—a high-cost goal with a complex purchasing process. But it’s especially scary in a seller’s market, amid tightened lending standards, high prices, low supply and, oh, a global pandemic. In spite of this, more homes changed hands in 2020 than in any of the past 14 years, and I was among those braving the headwinds”. Elizabeth doesn’t have a spreadsheet or a secret formula for choosing a mortgage. Instead she offers financial advice that is meant to be applied differently for different situations.
WHAT FINANCIAL ADVICE DID SHE GIVE?
She notes how selling a home right now can be a lot easier than buying one. Because of low home inventory, you may have a better chance of selling your home without having to renovate. Being flexible while purchasing a home may help you beat out the competition. She states that putting an offer on a home is not only about the price, it is also about the convenience. Sellers will be drawn to buyers that will make the deal as simple as possible. Elizabeth states, “An agreeable closing date, minimal contingencies, and proof of your ability to obtain financing are all part of a competitive offer”.
Elizabeth wrote, “If the payments for a 15-year fixed-rate mortgage still allow you to stay on top of your other bills and long-term financial goals such as retirement, you’ll save considerably in the long run. For example, financing $240,000 for 30 years at 3% costs about $124,000 in interest, where a comparable 15-year mortgage costs $44,000. Also, if you’re looking to take advantage of super-low interest rates, shorter-term loans generally offer the lowest rates”. Elizabeth recommends that potential buyers consider different options when searching for a lender and loan. Americans today can find mortgages that will fit a personal budget, lifestyle, and long-term financial goals.
Click here to read the full MReport article and learn more!
Click here to read the full NerdWallet article.
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