Delaware Mortgage Loans

As you set out on your homebuying journey, you likely have a plan in place, and you’re working on saving for your purchase. But do you know how much you actually need for your down payment? If you think you have to put 20% down, you may have set your goal based on a common misconception.  Freddie Mac   says : “The most damaging down payment myth—since it stops the homebuying process before it can start—is the belief that 20% is necessary.” Unless specified by your loan type or lender,  it’s typically not required to put 20% down . According to the  Profile of Home Buyers and Sellers  from the  National Association of Realtors  (NAR), the median down payment hasn’t been over 20% since 2005. It may sound surprising, but today, that number is only 13%. And it’s even lower for  first-time  homebuyers,  whose median down payment is only 7%   (see graph below) : What Does This Mean for You? While a down payment of 20% or more does have  benefits , the typical buyer is putting far less down.

  As a renter, you’re constantly faced with the same dilemma: keep renting for another year or purchase a home? Your answer depends on your current situation and future plans, but there are a number of   benefits to homeownership   every renter needs to consider. Here are a few things you should think about before you settle on  renting  for another year. 1. Rents Are Rising Quickly Rent increasing each year isn’t new. Looking back at  Census  data confirms rental prices have gone up consistently for decades  (see graph below): If you’re a renter, you’re faced with payments that continue to climb each year.  Realtor.com  recently shared the  September Rental Report , and it shows price increases accelerating from August to September  (see graph below) : As the graph shows, rents are still on the rise. It’s important to keep this in mind when the time comes for you to sign a new lease, as  your monthly rental payment may increase substantially when you do. 2. Renters Miss Out on Equity

With the average 30-year fixed mortgage rate from   Freddie Mac   climbing above 3%, rising rates are one of the topics dominating the discussion in the housing market today. And since experts   project   rates will rise further in the coming months, that conversation isn’t going away any time soon. But as a homebuyer, what do  rates  above 3%  really  mean? Today’s Average Mortgage Rate Still Presents Buyers with a Great Opportunity Buyers don’t want mortgage rates to rise, as any upward movement increases your monthly mortgage payment. But it’s important to put today’s average mortgage rate into perspective. The  graph  below shows today’s rate in comparison to average rates over the last five years: As the graph shows, even though today’s rate is above 3%,  it’s still incredibly competitive. But today’s rate isn’t just low when compared to the most recent years. To truly put today into perspective, let’s look at the last 50 years  (see graph below): When we look back even further, w

  Rents have increased significantly this year. The latest  National Rent Report  from  Apartmentlist.com  shows rents are rising at a rate much higher than the three years leading up to the pandemic: “Since January of this year,  the national median rent has increased by a staggering 16.4 percent.  To put that in context, rent growth from January to September averaged just 3.4 percent in the pre-pandemic years from 2017-2019.” Looking back, we can see rents rising isn’t new. The median rental price has  increased  consistently over the past 33 years  (see graph below) : If you’re thinking of  renting  for another year, consider that rents will likely be even higher next year. But that alone doesn’t paint the picture of the true  cost  of renting. The Money Renters Stand To Lose This Year A homeowner’s monthly mortgage payment pays for their shelter, but it also acts as an investment. That investment grows in the form of  equity  as a homeowner makes their mortgage payment each month t