6 Home Buying Statistics Buyers Must Know About – Our Guide
In today’s modern society, where you can access all the information you need to make better decisions, it is a surprise that many people still make some mistakes when purchasing properties. Before you apply for a home loan, remember that you must always do your due diligence.
However, the amount of information one can get online can be overwhelming. This is why our expert mortgage brokers at EST Home Mortgage rounded up these six statistics to help you with your home buying decisions:
1. Home Buyers Spend about 10 Weeks Searching for a Home and View Around 10 Homes
This says that your home buying process must not be rushed. In the end, buying a home is one of the biggest moves you’ll make in life. If you are going to live in a house for around three decades or so, you can be patient enough to spend at least two months finding the right one. Don’t buy the first attractive property you find. Go ahead and have at least 10 homes to initially consider; then, as you determine what you prefer, you can narrow down the list until you find the one that’s perfect for you!
2. The Median Price of a Home for Buyers 28 Years Old or Younger Is $177,000; For Those Aged 29-38, It’s $274,000
This statistic shows you that the median price for these two segments can have a difference of about $100,000. It means that within a 10 year period, a homebuyer can earn a hundred thousand more that they can add to their budget for their new home.
3. According to 26% of First-Time Home Buyers, Paying Down Debt Is the Main Reason They Can Hardly Afford a Home
Keep in mind that income and debt are two of the most significant criteria considered when lenders assess whether or not you’re qualified for a mortgage. You may not have control over how much you make every month, but you will have total control over your spending and keeping your debts low.
4. In 2019, the Average Mortgage Loan Amount Was $184,700
According to this stat, it means that if you take the same loan amount, and you pay a down payment of 20% of that, and you take a 30-year mortgage at 4%, you will have to pay $882 every month for your mortgage.
5. The Average Yearly 15-Year Mortgage Rate for 2020 Was 2.71%
The number above tells you that the rates on 15-year mortgages are often lower than a 30-year loan. So, if you think you can afford to pay higher monthly for a 15-year mortgage, it will actually save you more in total. Another positive is that you get to pay off your loan faster!
6. Mortgage Rates Are at a Record Low of Below 3%
This shows that you can grab the best buying and refinancing opportunities right now. The average interest rate on a 30-year mortgage dropped to 2.8%, which is the lowest in the last 50 years or so!
The numbers don’t lie, but you must be able to look beyond those numbers and see what they actually tell you when making mortgage comparisons. These statistics will help guide you in your decisions, and what they tell you is that you must not rush the home buying process. You should also make sure that you keep your debt under control. Likewise, consider getting a 15-year mortgage instead of a 30-year one if you can afford a higher monthly payment!
Keep in mind that you must also find a reliable mortgage loan officer to make sure you get the best deal possible. EST Home Mortgage is one of the best mortgage companies in Michigan that can help you buy a house or refinance your existing one. Contact us today to know more about our services!
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