Since the housing market collapsed in 2008, buying an existing home remains less expensive than it was prior to that event. Not only our home prices lower, mortgage interest rates are at record lows. The combination of the two means that buyers can now afford to buy more house for their money.
Towards the end of 2012 banks have started lending money for mortgages again. While it’s true that most banks have tightened requirements for borrowers, if you have a good credit rating and a down payment, the probability of being approved for a mortgage is very good. Even better, many first-time buyers have discovered that due to low interest rates on fixed term mortgages, their monthly mortgage payments are lower than rent. Even with the home mortgage deduction unsettled as to whether or not it will continue, buyers still find renting more expensive than owning. (more…)Read More »