Mortgage rates are the lowest they have been in decades. What does that mean for you?
It means that in the current market you could qualify for more than you think. First time home buyers could be spending what they pay in rent on a monthly mortgage payment that leads to equity and ownership!
There are several loan programs out there, and some, like VA and USDA Rural Development, require no money down. The Rural development loan covers most towns in the state of New Hampshire with a handful of exceptions, and of course veterans always have the option of a VA loan. Don’t forget about grants from New Hampshire Housing which can go toward a down payment or closing costs. Things are very affordable and favorable to buyers right now, and this may not last long as pundits have said rates may start rising.
So what can John and Jane Doe hope to qualify for if they make a combined $60,000 a year, have average debt, and a fairly good credit rating? Today, that average couple would be able to qualify for about $180,000 in a 30 year fixed rate mortgage. With the current interest rates hanging around 5 percent, that means John and Jane might be paying the same for their mortgage as they are for their current rental. Does this mean you should max out your borrowing capacity? No, but let’s say you do borrow the $180,000…
So what is on the market that this couple can afford? Well, with zero down they could find themselves in a new, to-be-built, 2 bedroom, 2 bath, 1,242 square foot ranch on Rangeway Drive in Rochester, priced at $179,900 (MLS# 2743135, Listing Agent Joanne Mitsiaris). There is nothing like a brand new home to call your own. For the same price, they could buy a 3 bedroom, 2.5 bath townhouse are under construction at 60 Copper Meadows in Rochester (MLS# 4032475, Listing Agent Jeff Paolini). Offering 1,545 square feet of living space, 9 foot ceilings, a wood burning fire place and attached oversize garage, these Green Energy Star homes offer energy savings as well as ownership.
If a home with a gas fireplace is something this couple has their eye on, then for $219,000 a 3 bedroom, 2 bath, Cape at 47 Dickey Street in Manchester’s West side (MLS# 4045340 – Listing agent Shelly Saucier) may be their new address. With a gas fireplaced living room, dining room and 1,276 finished square feet of living space with room to expand in its unfinished second floor, the Doe family could make the exciting leap to home ownership and cozy nights by the fire.
Mortgage payments will vary depending on how much you will be borrowing, the interest rate, and the length of your loan. Other factors also need to be taken into consideration such as your property taxes, your insurance, and your PMI, all of which are included in your monthly house payment. But with interest rates at an all time low and housing prices reasonable even for first time home buyers, now is the time to trade in your lease for a mortgage and home ownership. Why not take some time this weekend and check out Verani.com, insert your criteria, and start dreaming of owning your own home. Right now could be the perfect time.
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