Real Estate Myth Buster - Down Payment Requirements

Folks have been telling me that they really want to buy a home, but are not aware that it's easier than they imagined.  I tell them that this is the time to buy because:

- Rents continue to skyrocket
- Interest rates are at historic lows
- Available inventory is higher & there are fewer buyers out now
- Sellers are becoming more willing to negotiate, meaning I can get you a great value

Freddie Mac recently released a report entitled, “Perceptions of Down Payment Consumer Research.” Their research revealed that,

“For many prospective homebuyers, saving for a down payment is the largest barrier to achieving the goal of homeownership. Part of the challenge for those planning to purchase a home is their perception of how much they will need to save for the down payment……Based on our recent survey of individuals planning to purchase a home in the next three years, nearly a third think they need to put more than 20% down.”

Myth #1: “I Need a 20% Down Payment”

FACT:  No, you don't!  

“If a 20% down payment was required, 70% of those who were planning to buy a home in the next three years said it would delay them from purchasing and nearly 30% indicated they would never be able to afford a home.”  

FACT:  Programs are available which permit as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined!

Myth #2: “I Need a 780 FICO® Score or Higher to Buy”

FACT:  No, you don't!

According to Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans, 52.4 of approved mortgages had a credit score of 600-749.

You can do this!  I have some very knowledgeable & experience mortgage experts who will work with you to achieve your home goal.  Give me a call, I'm happy to help

FACT! RENTERS PAY SUBSTANTIALLY MORE -- OWNERS PAY LESS

There really is a difference between renting a home and owning a home.  But, you knew that, right? 

As a renter you are paying a mortgage – your landlord’s, not yours, and you have no tax deductions.  Bummer.

Since 2005, rent prices have skyrocketed while the typical mortgage payment as actually decreased.  

 “It’s mainly because mortgage rates back in December 2005 were significantly higher, averaging 6.3% for a fixed-rate 30-year loan, compared with 4.6% in December 2018.

The national median sale price in December 2005 – $190,000 – was lower than the $220,305 median in December 2018, but because of higher mortgage rates in 2005 the typical monthly mortgage payment was slightly higher back then – $941 – compared with $904 in December 2018.”

Insights Blog, CoreLogic

A recent report by the National Association of Realtors (NAR) showed that purchasing a home requires less of your monthly paycheck.

 

According to the Economists’ Outlook Blog, NAR’s February 2019 Housing Affordability Index showed that the “percentage of income needed” to pay the typical mortgage has decreased the last three months.  Wow!

• November – 17.3%
• December – 16.9%
• January – 16.2%
• February – 15.9%

What does this all mean to the current housing market? 

“The mortgage rate-driven affordability surge has arrived just in time… Rising affordability has already benefited home buyers and, if the lower rate environment persists, we’re in for a great spring home-buying season.”

First American  post

 

Still renting?  Don’t think you can afford a house?  

Contact me today and you may have a very pleasant surprise. 

 

Where and How to Recycle in Wake County NC

There seems to be a bit of confusion as to what is acceptable as "recyclable" and what is not.  Here are some great links to county and town sites for where to go to bring your recyclables, when pickup is in your town, and what can be recycled.  Also included is the link for info on Hazardous Waste.

The Town of Apex picks up recycling every week.  Click the link below for more info:
 

Apex Recycling

https://apexnc.org/552/Residential-Recycling






The Town of Cary picks up recycling every other week following a "Blue" or "Yellow" calendar. 
Learn more here:  

Cary Recycling

https://www.townofcary.org/services-publications/garbage-recycling-yard-waste/recycling/curbside-recycling

 

Recyclables are picked up each week in Morrisville.  Here's the link:

Morrisville Recycling

https://www.townofmorrisville.org/government/departments-services/public-works/trash-recycling-and-yard-waste/recycling

Raleigh recycling depends on the area of the city where you live.  Click the link below to find out more:

Raleigh Recycle

https://www.raleighnc.gov/recycling

Wake County Hazardous Waste Sites

http://www.wakegov.com/recycling/division/facilities/Pages/hhw.aspx

I care!  If you need any info on our local real estate market or have questions, don't hesitate to give me a call.