*Edited 7/26/16 to include better detail about the effect of interest rates on buying power*
We all know that there are certain advantages that come with building: customization, quality control, planned neighborhoods, etc. Less known, are the benefits of building for completion this year. Since the deadline is fast approaching to build your home for completion within the year, we decided to share some of the benefits for those of you on the fence.
Low Interest Rates
-Rates are holding steady now but this is expected to change soon. With rates at historic lows and the Fed looking to increase, rates don’t have anywhere to go but up.
-Get more home for your money now! With lower interest rates, you can afford more home. When rates rise, your hard earned dollar will be eaten by interest. The table below is from this site and illustrates the impact of rising interest on your monthly budget.
| Max Principle & Interest Payment |
4.50% | 5.00% | 6.00% |
| $1,000 | $245,000 | $235,000 | $208,000 |
| $1,200 | $295,000 | $280,000 | $250,000 |
| $1,400 | $345,000 | $325,000 | $292,000 |
| $1,600 | $395,000 | $372,000 | $335,000 |
| $1,800 | $445,000 | $420,000 | $375,000 |
| $2,000 | $495,000 | $465,000 | $415,000 |
DFW on the Rise
-The cost of older homes, and home sites are on the rise, and expected to continue with the steady stream of new jobs coming to the metroplex.
-As property prices rise, rent prices rise.
First Time Buyer Advantages
-There are still funds available for First Time Buyer programs! Both the government and the banks have programs specifically for first time buyers.
-Take advantage of Down payment assistance programs with low interest rates. See a community sales counselor for qualifying details
Taxes
-Qualify for your full homestead exemption when you purchase a home before 2017!
-Take advantage of tax savings in 2016! Any Mortgage Interest, property taxes and points paid on your loan will be tax deductible for your 2016 tax return!
Sources:
Interest Rates, DFW on the Rise, First Time Homebuyer, Taxes
Until Next Time,
Rebekah