A lot has changed in the past month. Your ability to buy a home is not one of them. There are 4 (really good) reasons to buy a new home now, so maybe you should take a closer look. At Riverside Homebuilders, we’re still hearing from people every week who are using this time at home to work on making a move.
#1. Rates are at an all-time low.
Mortgage rates in the Dallas-Fort Worth area right now are as low as 3.25% for a 30-year, fixed rate loan. In April 2019, the average was 4.20%. That’s nearly a full point difference. What does that mean to your monthly mortgage payment?
Well, if you purchased a home for $290,000 with the 4.20% interest rate, your monthly mortgage payment (principal and interest) would be $1,135. At 3.25%, that monthly amount would be $1,010. That means you’d be saving $125 per month, $1,500 per year, and $45,000 over the 30-year term of the loan.
Is $45,000 enough to motivate you right now?
#2. New homes inventory is still strong.
Once the pandemic is over, we expect that prospective homebuyers who put their plans on hold will create a rush of demand. With the slowdown in new home construction, the supply of available inventory will be limited. More buyers means more competition. By making the decision to buy a home right now, you have your pick of available homes.
Of course, you can always contract to build your home so you get exactly what you want and where you want it. Wouldn’t it be great to have us start building your home now, rather than wait until later, so you can move in sooner? You can be settled in your new home in the school district you want before the kids return to the physical classroom this fall.
#3. Builder incentives aren’t going to get better than they are right now.
Homebuilders are offering sales incentives to encourage buyers to act now. In addition to the low interest rate currently available to homebuyers, the added value of incentives reflects a limited time offer. Riverside Homebuilders is currently offering $5,000 in closing cost credits for any move-in ready homes that are contracted by May 15, 2020, when you use our preferred lender.
First responders and medical professionals receive an additional, $1,500 credit toward closing costs, our way of thanking our front-line heroes.
We’re also including a REME HALO whole-home air purification system. This unique bulb is connected to your air ducts and purifies every cubic inch in your home!
Realtors, we have incentives for you as well. Riverside Homebuilders will reward you with a $2,000 Realtor bonus when you sell any of our move-in ready homes no later than May 15, 2020.
#4. It’s as cheap or cheaper to own than rent.
The average monthly rent in the Fort Worth area is $1,128 for an 872-square-foot apartment. That’s about $1.29 per square foot. Now, let’s look at a home that is priced at $289,900. This one happens to be 2,081 square feet, more than double the size of the apartment. Based on the mortgage estimates above, that mortgage would be $1,010 per month. Do the math and you discover that this larger home is less than 48 cents a square foot. PLUS, you have an investment instead of an expense, and you’re living in a brand new home, with all the modern features and with a yard of your own, as well as tax deductions that aren’t available to renters.
If you don’t have the down payment right now, look into some of our communities that qualify for 100% financing through the USDA Single Family Housing Guaranteed Loan Program or qualifying for a VA home loan. You can also explore mortgage programs with low down payments, as low as 3.5%.
Stay safe and be careful during your search for a new home. We’re offering virtual tours and appointments, as well as private ones. Every home is sanitized before and after each visit, and our team is adhering to social distancing. Get started by talking with Rachel about your plans, ideas, and needs.