Published on July 18th, 2017 | by Home and Family0
Planning to Purchase a House and Confused by Home Financing?
Are you planning to purchase your first or second home? Some investment property? Or perhaps you’re finally going to buy that vacation home you’ve always imagined. Whether you’re purchasing a vacation home, a place to enjoy your retirement, or your very first home, you may be interested in a few highlights about the housing market and related topics.
Average Home Sale Prices
The average sale price for a house in the United States was $186,000 in March of 2016. As of May 2017, however, the National Association of Realtors (NAR) website indicates that the median sales price was $252,800. If you’ve already been searching for properties, you may have noticed a variety of homes within these and other price ranges.
While many home buyers are interested in older homes, 32% of first-time home buyers want to move into a newly-constructed home. These new homes appeal to individuals for many reasons, which includes their energy-efficient features. Some of these new homes are grouped together in communities close to schools, shops, and other amenities.
Understanding Your Mortgage
If you’ve already owned a home, how well did you understand your mortgage? When surveyed, 59% of homeowners wish they had a more thorough understanding of these terms and details. This is where having an experienced real estate agent can make a major difference. It is also beneficial to work with a lender that is known for providing an excellent customer experience.
Millennials and Mortgage Planning
Around 31% of individuals within the Millennial age group are planning to buy a home within the next 2 years. In order to accomplish this milestone, they have a specific mortgage plan in place. Chances are that this age group is engaged in the proverbial due diligence in order to understand their mortgage options. They may be actively engaged in research, for example, to determine whether they will quality for a conventional mortgage or FHA mortgage loans.
According to Freddie Mac’s “2015 Q4 Refinance Report,” homeowners refinanced their loans after an average of 6.4 years. There are a variety of reasons why some homeowners choose to refinance. While some may do so to adjust their monthly payments, others do so to upgrade or renovate their property.
Recent Financing and Mortgage Trends
The “2017 NAR Home Buyer and Seller Generational Trends” report revealed that for home buyers 36 years old and younger, 98% financed their homes. For older individuals between the ages of 62 to 70, 68% financed their homes.
It’s interesting to note that in 2016, 14% of home buyers were able to obtain a 100% financed mortgage. The NAR report specified that 24% of buyers were able to obtain FHA loans, and 92% of all buyers obtained fixed rate mortgages in 2016.
Community-Minded Home Buyers
When selling their existing houses and purchasing a new home, many people choose to remain in the same neighborhood or general area. The “2015 National Association of Realtors” report showed that the median distance of 14 miles separated these housing locations. In other words, after selling their house, they moved into a new home that was located just 14 miles away.
If you don’t want to move away from your community, but feel the urge to live somewhere else from time-to-time, buying a vacation home in another area makes sense. Not only can this be a great investment, you’ll feel refreshed and rejuvenated from being on vacation in your home-away-from-home.