Escape the Rent Trap
So, amid all the economic doom and gloom, is there any ray of sunlight? How about any cause for optimism at all? Of course there is, the financial markets seem have recently experienced one of the biggest run-ups in stock market history, the marketplace is being purged of bloated, inept companies and the economy as a whole is showing signs of life.
But perhaps the greatest reason for optimism lies with first time home buyers, who are poised to capitalize on a confluence of factors that could make this the most advantageous time to apply for a mortgage and buy a home they could have ever imagined. In this article, we will explore the factors that make this so.
First, it is important to note that while the stock market has rebounded, the real estate market has not. The home market is still very much a buyer's market, with upside down sellers desperate to dispose of their property in many cases. Obviously, this bodes well for first time buyers to take advantage of depressed property which is highly likely to appreciate significantly over time. By taking advantage of significantly depressed real estate prices, the first time buyer is likely to capture the rebound these properties are likely to experience.
Second, many mortgage lenders are relaxing their lending standards to the first time buyer market. This is particularly true for first time buyers who are fortunate enough to have family members who are willing to help them financially. However, even for buyers whose families are broke, lenders are offering first time home buyers flexible mortgage products at previously unheard of rates.
Here is how a common first time home buyer program is laid out: 1) The home buyer is required to put down a five percent deposit on their mortgage 2) A family member is required to put twenty percent of the purchase price of the home into a savings account with the lending bank which must remain there for a minimum of 3.5 years 3) Other considerations include the buyer's credit, current financial obligations, income and whether or not they are a current customer of the bank. The interest rate is an astoundingly low 4.39% to 4.89% for this particular mortgage product.
This is obviously smart business for the bank because they are taking relatively low risk and endearing themselves to a whole new generation of loyal customers. But more importantly, this is allowing first time home buyers the opportunity to quit flushing their rent money down the toilet and instead experience the pride of ownership and financial security that come from owning a home.
Too many times we get so focused on the negative that we ignore the positive all around us. I think it was Tony Robbins who once said that within every adversity is the seed of an equivalent or greater benefit. So quit belly aching about how bad things are, and get out there and take advantage of the significant opportunities that are now present in the real estate market and mortgage market for first time home buyers. You will be very glad you did in a few years.
But perhaps the greatest reason for optimism lies with first time home buyers, who are poised to capitalize on a confluence of factors that could make this the most advantageous time to apply for a mortgage and buy a home they could have ever imagined. In this article, we will explore the factors that make this so.
First, it is important to note that while the stock market has rebounded, the real estate market has not. The home market is still very much a buyer's market, with upside down sellers desperate to dispose of their property in many cases. Obviously, this bodes well for first time buyers to take advantage of depressed property which is highly likely to appreciate significantly over time. By taking advantage of significantly depressed real estate prices, the first time buyer is likely to capture the rebound these properties are likely to experience.
Second, many mortgage lenders are relaxing their lending standards to the first time buyer market. This is particularly true for first time buyers who are fortunate enough to have family members who are willing to help them financially. However, even for buyers whose families are broke, lenders are offering first time home buyers flexible mortgage products at previously unheard of rates.
Here is how a common first time home buyer program is laid out: 1) The home buyer is required to put down a five percent deposit on their mortgage 2) A family member is required to put twenty percent of the purchase price of the home into a savings account with the lending bank which must remain there for a minimum of 3.5 years 3) Other considerations include the buyer's credit, current financial obligations, income and whether or not they are a current customer of the bank. The interest rate is an astoundingly low 4.39% to 4.89% for this particular mortgage product.
This is obviously smart business for the bank because they are taking relatively low risk and endearing themselves to a whole new generation of loyal customers. But more importantly, this is allowing first time home buyers the opportunity to quit flushing their rent money down the toilet and instead experience the pride of ownership and financial security that come from owning a home.
Too many times we get so focused on the negative that we ignore the positive all around us. I think it was Tony Robbins who once said that within every adversity is the seed of an equivalent or greater benefit. So quit belly aching about how bad things are, and get out there and take advantage of the significant opportunities that are now present in the real estate market and mortgage market for first time home buyers. You will be very glad you did in a few years.
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