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Top 3 Reasons To Become A First Time Home Buyer in 2017!

Buying a home for the first time is not only the smart thing to do in 2017 but it’s an important part of what most would consider the “American dream”! Let’s setup the scenario for a second. We are on the cusp of the end of the first quarter of the year already! We have officially elected a new President and the economy appears to have rebounded. You’re finally working a job that doesn’t require a Ramen noodle lifestyle only (love Ramen by the way). Your apartment is feeling cramped and you are looking for that next big purchase! With the right financial preparation and tools, purchasing a home can be the beginning of long-term wealth building, with your mortgage payment possibly lower than what you are currently paying for rent. With a fixed-rate mortgage, your payment will not go up which isn’t true with rent which seems to go up a little each year.

Check out the top 3 reasons to become a first time home buyer in 2017!

1. Mortgage Rates are still very good

Currently mortgage rates are still sitting at about 4%. Although they are not as low as they have been in previous months they are still historically low with rates going up to as high as 10% in 2006. Locking yourself into a low rate now would definitely be beneficial!

2. Down payments are low

Currently down payments are ranging from 1%-3% which is obtainable on most budgets. There are even first time home buyer credits that can assist you with your down payment or take care of your down payment completely. FHA, VA and USDA loans often have no-money-down options as well.

3. Decorate your home exactly the way you want!

Owning your home gives you the flexibility of decorating however you want. Maybe making that one room entirely purple like you imagined as a kid, or a complete gallery wall of family photos! Buying your own home allows you that flexibility which renting does not.
These are just the top 3 reasons to become a first time home buyer in 2017 but there are many more. To find the perfect neighborhood and view move-in ready homes, please visit our Find A Home web page.

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Will interest rates continue to rise in 2017?

The 30-year fixed-rate mortgage rose by just over a quarter of a percent recently to around 4 percent. That’s the largest one-week increase in over three years. What does that mean for home buyers? Will interest rates continue to rise in 2017?

Even though the rate hike has many home shoppers hitting the pause button on signing up for a new home mortgage, it’s important to remember that the rates are still at an historic low. In case you’re a Millennial and don’t remember interest rates above 7 or 8 percent, the rates in the 1980’s were in the teens. Although they’ve been historically low for the last six years, you have to go back 60 years or more to find interest rates below five percent before 2010. I got my first mortgage in 1992 and was thrilled to get 9.9 percent on a fixed rate loan. I would have killed for 4 percent.

Will interest rates continue to rise in 2017? The most likely answer is yes, but that’s not necessarily a bad sign. Generally speaking when the economy is strong the interest rates go higher, and when times are economically tough, the Fed lowers the rate in order to make it easier for consumers and businesses to borrow and spend, which pumps more money into the economy to help it recover.

So, if you are considering buying a new home in 2017, should you buy or should you wait? Most mortgage advisors would recommend locking in your rate as soon as possible to get the best rate.  It’s important to remember that your credit score is probably a much larger determining factor in what rate you might pay when getting a mortgage than the benchmark interest rate at this point. So, make sure to manage your credit rating and don’t make any large purchases on your credit cards or buy a new car anytime soon if you plan on buying a house this year.

McKee Homes works with a few mortgage companies which we refer to as our preferred lenders. These companies all provide excellent customer service and are going to give our homebuyers the best rates so they get a mortgage that works for them. We continue to see very positive survey reviews from our homebuyers in regards to our preferred lenders. In fact we pay all closing costs when buyers use one of our preferred lenders, and to lighten the sting of the interest rate hike, we are even giving our homebuyers free blinds and an upgraded refrigerator on all homes that are currently under construction or move-in ready until March 31, 2017.

For more information on our preferred lenders and our buyer incentives, please visit our Buyer Incentives web page or give us a call at 910-672-7296.