People in Delaware who are still paying rent may want to consider purchasing a home in 2016. There are many reasons why this year is a good year for buying property, including the fact that interest rates are still low. Though interest rates have risen slightly, they are still around 4 percent, which is a record low. In the 1980s, interest rates were around 18.5 percent.
The rising rent prices are another great reason to purchase a home this year. In many cities, monthly rental payments are the same or higher than monthly mortgage payments. Rental rates are continuing to go up, as the 2015 Rent.com Rental Market Report revealed. According to the survey, 88 percent of property managers had increased rental costs during the previous 12 months.
While low interest rates and relatively low mortgage payments make purchasing a home sound more prudent than renting, the down payment stops many would-be home buyers in their tracks. However, down payments are getting smaller, and there are now programs available to help home buyers purchase homes with low down payments. For example, the Fannie Mae and Freddie Mac Home Possible Advantage Program allows people with a credit score of at least 620 to buy a home with a 3 percent down payment.
Buying a first home can be overwhelming and confusing for people who don’t have a background in real estate. A new home buyer who is unfamiliar with the process of purchasing residential real estate could end up buying a piece of property that has title issues or other problems. A real estate law attorney may be able to help a new home buyer by investigating the home title and inspection report.