The time for sitting on the sidelines is over.
With last year’s mortgage rates hitting historic lows and the Federal Reserve eyeing another rate hike later this year, prospective homebuyers have more reasons than ever to achieve their dreams of homeownership. But biding your time or using the wrong lender could cost you…big time.
Still unsure? Read on and see why low interest rates coupled with some of the best choices in mortgages are making 2017 a banner year for home-buying.
1) One Starbucks Drink Per Day = Down Payment
Most millennials think they need to put 20% down to buy a new home. Why? That’s how Mom and Dad did it in their day.
According to our 2017 Millennial housing outlook study, 70% of respondents say that saving for a down payment is the biggest obstacle to homeownership. But times have changed.
Today, you can buy or refinance a home for as little as 1% down—an average of about $2,000. Skip that daily Starbucks latte, and in 13 months, you’ll have a down payment. If you’re a renter, think about using your security deposit as a down payment.
2) Forget the One-Size-Fits-All Mortgage
When your parents shopped for their first mortgage, they probably went to their local bank. Today, TV tells you to go to a direct mega-lender. But did you know that there’s a better option?
An independent broker will shop your loan with multiple lenders to find the best rate that meets your needs. Big banks and mega-lenders only have one set of options—and getting you a mortgage is really only a part-time job in between selling other products like auto loans, CDs and checking accounts.
Unlike their bank counterparts, independent mortgage brokers can put in the time and legwork required to find the best options—including those same big-bank loans. In the end, more options means lower payments and extra money in your pocket. Use a website like superiorml.com to connect with a broker near you./