(Photo: Realtor.com)

Hard to believe another year is approaching. What happened to 2015? We all have major goals and aspirations as soon as the new year hits. Losing weight, eating better, running more, finally cleaning out the attic, refinishing the floors, painting the unfinished bedrooms, the list goes on. Maybe even on that list is the idea to (finally) purchase a home.

Realtor.com provided 6 reasons to buy a home in 2016, and we certainly couldn’t agree more!
1. Interest rates are still at record lows.
Even though it’s possible for interest rates to creep up a bit the current rates are still at record lows. A 30-year fixed-rate home loan is hovering around 4%. Rates are still expected to rise in 2016, but overall they will be lower than they will be in a few years to come.
2. Rents have skyrocketed.
Rent amounts certainly aren’t expected to drop, but instead keep rising. Even with the increase of apartment growth, especially in Fort Collins, there is still a high enough vacancy rate (about 5%) that owner’s are able to increase rent yet again. An 8% hike in rent is predicted for 2016.
3. Home prices are stabilizing.
Even in heated markets, prices are starting to stabilize. Like we said in a previous blog, there is no essence of a bubble nor will the market coming to a crashing point, but prices are expected to level out. This is great news for home buyers! We are going to start seeing more normal market behavior than what we saw in 2015.
4. Down payment assistance programs are readily available.
One of the biggest obstacles for renters to move to home buyers is the inability to come up with a down payment. Many cities and counties within Colorado offer down payment assistance programs. The City of Fort Collins also offers a Homebuyer Assistance (HBA) program. There are specific programs that offer 3% down for credit scores as low as 620.
5. Mortgage insurance is a deal, too.
If less than 20% is provided for a down payment the homebuyers are required to get mortgage insurance. The mortgage insurance fees are way down from 1.35% to 0.85% of the mortgage balance. This is great news for new homebuyers because the FHA predicts this will bring 250,000 first time homebuyers to the market.
6. The benefits of major tax breaks.
Tax laws completely favor those who own their home over those who do not. Tax breaks of owning a home are so advantageous that unless your home loan is more than $1 million, you can deduct all the monthly interest you are paying on that loan.

2016 is a GREAT time to invest in a home and we want to help! Give us a call at 970-221-5995 or visit our website to begin your home buying experience. We have lenders, banks, title companies and all sorts of resources to help you start the journey.

Oh, and by the way…have a happy new year!