Buyers Blog Update 1-13-2020
The Veterans Administration officially announced the new VA Loan Limit set to take effect January 1, 2020. This time it’s very different. There will be NO LIMIT for veterans with full entitlement. Yes, that means if you can afford the payment (and get pre-approved) for a $2.5 million dollar home, then you can buy one using your VA home loan with $0 down payment! That’s right, ZERO down payment.
How Did This Major Change of No VA Loan Limit Come Around?
The change was implemented as part of the Blue Water Navy Vietnam Veterans Act of 2019, passed by Congress to support health care needs of a specific set of Vietnam veterans who served offshore of the Republic of Vietnam between Jan. 9, 1962, and May 7, 1975 and had contact with Agent Orange. In order to fund the program, Congress needs a revenue source, so the additional revenue from increased VA funding fees will go to support the costs.
*Article sourced from hawaiivaloans.com
Dream Big: 6 Reasons Why You Should Look at Homes Outside Your Price Range
When you’re house hunting, budget is everything. It dictates how much home you can reasonably afford, and therefore which homes you look at. After all, you don’t want to end up house poor or risk going into foreclosure because you couldn’t maintain your mortgage payments.
*Article sourced from Realtor.com
3 Benefits to Buying Your Dream Home This Year
Outside of a strong economy, low unemployment, and higher wages, there are three more great reasons why you may want to consider buying your dream home this year instead of waiting.
1. Buying a Home is a Great Investment
Several reports indicate that real estate is a good investment, topping other options such as gold, stocks, bonds, and savings. Why? Real estate helps build equity, a form of investing for you and your family. According to CoreLogic’s Equity Report,
“U.S. homeowners with mortgages (roughly 64% of all properties) have seen their equity increase by a total of nearly $457 billion since the third quarter 2018, an increase of 5.1%, year over year.”
This means the average homeowner gained approximately $5,300 in equity over the past year. If you want to start building your equity, put your housing costs to work for you through homeownership this year.
2. Mortgage Interest Rates Are Low
The Primary Mortgage Market Survey from Freddie Mac indicates that interest rates for a 30-year mortgage have fallen since November 2018 when they hit 4.94%. In their latest forecast, Freddie Mac expects rates to remain low, leveling out to a yearly average of 3.8% in 2020.
When you purchase a home at a low mortgage rate, it will impact your monthly mortgage payment, giving you the opportunity to buy more house for your money.
3. Investing in Your Family is a Win
There are some renters who haven’t purchased a home yet because they’re uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you’re living rent-free with your parents, you’re paying a mortgage – either yours or that of your landlord.
Today, rental prices continue to increase, and when you’re paying your landlord’s mortgage instead of your own, you’re not the one earning the equity. As an owner, your mortgage payment is a form of ‘forced savings’ you can use later in life to reinvest in your family. You can use it for a variety of opportunities, such as saving for your children’s education, moving up to a bigger home, or starting your own business. As a renter, it can be more challenging to achieve those types of dreams without home equity working for you.
Buying a home sooner rather than later could lead to substantial savings and long-term financial growth for you and your family. Let’s get together to determine if homeownership is the right choice for you this year.
*Article sourced from MyKCM.com
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
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