Are you a first-time home buyer exploring your housing and loan options? One of the first steps is to engage in mortgage planning so that you’re aware of what is entailed with purchasing a home. In addition to a conventional mortgage, you may be interested in learning more about other possible options. These include FHA, VA, and USDA loans that are either guaranteed or insured by the federal government.
Mortgage Planning and First-Time Home Buyers
Recent data shows that 32% of prospective home buyers are purchasing their very first home. Millennials in particular are engaging in mortgage planning activities. Within the next two years, 31% of adults within this age group are planning to purchase a home.
Average Home Prices Throughout the United States
The average home sold for $186,000 in March of 2016. In the following March, this figure increased to $384,400, according to the census.gov report. Recent data from Zillow.com
, however, shows that the median price of the homes sold in January 2018 was $326,,000. After purchasing a home, some owners may choose to refinance. The duration of these loans will vary among home owners. According to the Freddie Mac 2015 Q4 Refinance Report, however, the median time period for a refinanced loan was 6.4 years. In order to purchase their home in 2016, 14% of buyers financed the entire purchase price. The 2017 NAR Home Buyer and Seller Generational Trends report indicated that 98% of buyers that were 36 years old or younger financed their homes. When considering buyers between the ages of 62 and 70, 68% of these individuals financed their homes. Since some individuals may be interested in relocating to a rural area to build a new home, they may be interested in learning more about rural development USDA loans. Home owners can also apply for rural development USDA loans to upgrade their existing homes in these less-developed areas. Since these loans are offered through federally-funded programs, their interest rates are lower than their private counterparts. Many homeowners have indicated that they could understand their mortgages better. Roughly 59%, however, wish that they had a greater understanding of the specific terms and details of their loan. This is why it is so important to locate a mortgage broker that values their clients and cares about educating them on these matters. Since there are a variety of loans available for qualified buyers, these can be discussed in detail with their broker.
Past Trends in Home Refinancing
Current Trends in Home Financing
The aforementioned report also indicated that a large percentage of home buyers used a fixed-rate mortgage. In 2016, 92% of all buyers used this type of mortgage to purchase their homes. Given the total number of buyers within that year, 24% used an FHA loan to make their purchase.
Rural Development USDA Loans
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