When we ran the numbers, we realized that, generally, starter homes just don’t make sense. For one thing, the bulk of your mortgage payments in those first years go directly to interest payments, meaning you haven’t built much equity by the time you trade up. The median house price is roughly $200,000 and for the sake of argument, let’s say you don’t put anything down. If you stayed there for five years with a 4% interest rate on a 30-year fixed mortgage, two-thirds of your payments go to interest costs alone. You don’t build up a ton of equity.
Key Takeaways:
- You heard that right. According to a new report by BR Research, Inc. first-time home buyers are bypassing Step 1 of the American Dream.
- Steve and I have a goal and passion is to educate First Time Home Buyers NC on the programs available to them to make that dream home a reality sooner rather than later.
- If you’d like to know what your options are or learn what steps you can take now to set yourself up for qualification in the future, feel free to give us a call.
“A shocking 66% of buyers expect some form of help from their parents when they do finally buy. Let’s not rush to judge this new crop of NC home buyers though– when BR Research asked recent buyers about how they did with their budgets, 73% say their Down Payment fell exactly where they expected, and 65% said the final cost was within their budget.”
http://ncfhaexpert.com/housing-news/first-time-home-buyers-dont-want-starter-home/
Alliance Credit Counseling
8000 Corporate Center Dr Suite 114
Charlotte, NC 28226
(704-341-1010) / (704-341-1010)