Although the government has backed off the purchase of mortgage backed securities, mortgage interest rates remain historically low. There have been moderate fluctuations in interest rates over the last twelve months, but the rate on a thirty year fixed, conforming loan remains in the low 4% range. This bodes well for Sellers as demand for inventory remains high. The low rates combined with affordable housing prices create the perfect buying opportunities as well.
The general consensus seems to be that it is difficult to obtain a mortgage loan in today's environment. However, in spite of increased documentation requirements, a borrower with reasonably good credit, a two year work history and a minimum down payment of 3.5% (all of which can be a gift from a family member), it is easier to obtain a mortgage loan today than it was in the 1990's. It is a misnomer that a down payment of 20% is necessary.
In a recent study conducted by WalletHub, Colorado tops the nation's affordability lists for first-time homebuyers. As rents increase and interest rates remain low, it may be more appealing to own versus rent. I see a continued trend for parents and grandparents to help first time homebuyers with a down payment, as a co-signor on the loan or both in order to help young people begin the
process of long-term financial planning.
Written by:
LESLIE BROWN, LOAN OFFICER WITH AFFILIATED FINANCIAL GROUP.
303.740.4423OR WWW.AFG-CO.COM/LBROWN NMLS#314268REGULATED BY THE COLORADO DIVISION OF REAL ESTATE.
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