December 18, 2013 by · Leave a Comment
Time is ticking down on 2013 and if your clients are debating on whether or not to make an offer before the year is over, maybe these 5 reasons will help!In this full article from homefinder.org, top mortgage and real estate experts share five ways you will benefit if you buy a home by December 31, 2013.
1.) Avoid rising rates roulette: Mortgage interest rates, while still attractive, are up 1 to 2 percent over this time last year. It’s possible to lock in a 30-year fixed rate mortgage at about 4.5 percent now and mortgage rates are now forecasting to rise about 5 percent in 2014.
2.) New Year, new lending rule: Lending rules will change on January 1, 2014 and it could be harder to get a loan. 2014’s rules will allow you to borrow less, at your same level of income, says Huettner. 2013’s current mortgage rules allow for a 45% total debt to income ratio (DTI); in 2014, the DTI will go down to 43%.
3.) Easier financing: If you are waiting for home prices to decrease, don’t. 2014’s mortgage changes could make it harder to get financing so if you are looking to save a few dollars by waiting for home prices to drop, you could miss your window to secure a mortgage entirely.
4.) Lower sales could mean higher inventory: While 2013’s housing theme was limited inventory and higher prices, historically, the fourth quarter of the year usually slows down the housing market and this year is no exception. Housing sales have been declining since September so inventory has increased. You may get the deal of December!
5.) Maximize tax deductions: It’s important to remember that if you buy before the end of the year, you can begin deducting interest and building equity immediately. Some closing costs and points are tax deductible in the year you buy a home. Buying now allows you to include them on your 2013 tax return.
