There are several new low down payment options such as 1% down and 3% down for conventional loans. FHA is a staple easy way to get financing with 3.5% down which will have a lower interest rate and pretty good mortgage insurance. Conventional also offers 5% down where the rates will be the most competitive. If I were a buyer in todays market I would just be looking to get into a home than the interest rates or the down payment because the market is forever increasing. Regardless of previous history worst case scenario don’t put yourself in an ARM and you will always have the ability to potentially rent your primary home out if you can no longer afford the home or rent out some of the rooms if you are really getting desperate. Either way, if you are not in the business of owning real estate you are paying for someone else’s and just missing out on creating wealth through appreciation. A mortgage will help leverage the property unlike in the stock market if you buy something you have to pay it’s value but in real estate you can buy something for 100k and only put 3k down. This is called leverage by using a mortgage to leverage that debt. The greater the value in the property usually the greater the return potential. Check out www.mortgagenewsdaily.com for daily market tips and more information on the industry. There is also www.themortgagereports.com another great website for mortgage related articles and learning about the current economy.
Many people worry about another crash or bad loans, but it does not appear that it will be generated by the real estate market. Right now inventory is the issue, not bad loans. Is inventory really a factor to cause a crash? It is causing prices to increase, but the qualifying purposes are still in place for those prices. It’s just our new reality in the market and the only way to relieve that pressure is to build new construction but they usually will get premium prices on new construction. It’s a tough thing to forecast the future and with Trump in the white house a business first president it does not appear that he will do anything to directly negatively affect the market but other factors can affect our real estate market. Figuring out what that is is the key for someone to make a lot of money but as of now I personally do not see that opportunity of a collapsing market. In fact, I see so many ways to hedge against a collapsing market that the negative does not appear to outweigh the positive.
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