Down Payment Assistance Grants Available
Source: El Paso County, Colorado • Single Family Mortgage Bond Program
Be it your first or your last, buying a home is no small accomplishment. And when you’re a first timer, there’s so much to learn and so little time, since your lease is expiring and/or you’ve suddenly realized you’d rather not commit another year of mullah to pay for someone else’s mortgage/retirement plan.
Though a tad more difficult to qualify for than the subprime days of yesteryear, for those with verifiable income, relatively stable employment and a decent (not necessarily excellent) credit score, today’s borrowing environment is full of unprecedented opportunity.
Here’s how.
- Market values are climbing, which might mean we have come out of the down cycle. Consequently, barring another economic collapse of course, prices will continue to rise for the next 8 – 11 years of our current real estate economic cycle*.
- Currently estimated to be up to 20% annually in some areas of Colorado**, this friend of ours is called appreciation, AKA your money-maker.
- OK. So, the $100,000 house you just bought appreciates at 20%. In theory, this means the house will be worth about $120,000 year 2, $144,000 year 3, $173,000 year 4 and so on.
- Currently estimated to be up to 20% annually in some areas of Colorado**, this friend of ours is called appreciation, AKA your money-maker.
- With 30 year fixed rate mortgages at about 4% annually, you are able to finance an asset at a lower interest rate than its projected appreciation! This is like your bank charging you less than the federal funds rate. Or like your three-year old used car being worth more today than it did new. You get the point?
- Market rents are pretty high and climbing, sometimes more than relative mortgage payments! For example, the Average Rent Price in Colorado Springs is $1,321***, the principal and interest payment for a $276,000 home, which is slightly above the average home price****.
- When you’re a renter, consider your housing mullah turns into cosmic dust at about the 1st of each month, never to be seen again in this life, as opposed to the pixie dust that happens to homeowners when appreciation (and principal reduction) come together at about the same time, turning their home sweet home into a long term investment, even retirement tool.
- Many renters shy away from buying due to the cost, which includes a down payment, closings costs and other fees, all of which can add up. So for a little icing on the cake, consider the El Paso County Down Payment Assistance Grant contributes 4% of the purchase price towards down payment and closing costs.
Of course, there are property taxes, insurance, maintenance and other costs to consider with home ownership but overall, it’s generally better to buy than rent, especially in our current environment.
If you’re still reading you can go ahead and admit, it’s time to buy a home. Conveniently located at the bottom right of this screen, use the contact form to setup your personalized consultation and see how easy it can be when you hire a knowledgeable professional to help.
Do it now, before the sky falls.
* REAL ESTATE CYCLES: THEY EXIST… AND ARE PREDICTABLE http://bit.ly/1q3duZF
** Colorado Appreciation Rates: http://www.neighborhoodscout.com/co/rates/
*** Colorado Springs Rental Market Summary: http://www.realtor.com/local/Colorado-Springs_CO/rent-prices
**** PPAR Housing Statistics, Average and Median Sales Prices: http://www.ppar.com/Statistics.aspx
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