In a new post on Bankrate’s Mortgages Blog, Jean Chatzky offers some great advice for those who are trying to decide if 2015 is the right year for them to buy a new home.
For years, analysts have been saying that interest rates are headed up – that there is, in fact, nowhere for them to go but up. But they’ve instead held low for much longer than expected – and will likely continue to hold for some time.
Those continued low interest rates, though, are just the tip of the iceberg. There are several other reasons why 2015 is looking attractive to homebuyers: Rents are up, making buying a more cost-effective option in many cities. Lending requirements have loosened, and there are more financing options available. The government lowered mortgage insurance premiums on FHA loans from 1.35 percent to 0.85 percent, saving the typical FHA borrower around $80 a month, according to CoreLogic. And, Fannie Mae and Freddie Mac have agreed to back loans with as little as 3 percent as a down payment, allowing more first-time buyers into the market.
If all of that has you considering jumping in, here’s what you need to know.
