Are you better off fixing or buying a home?

Are you better off fixing or buying a home?

There is neither a specific answer nor one size fits all!  There are plenty of considerations to review. First of all, your financial ability and market demands are some of the factors to survey before deciding if it’s wiser to find a new dream home or fix your current home.Luxury Home Kitchen.

Before considering renovating your existing home, take an inventory of your home’s physical current condition, and deal with contractors for renovation costs. Major home renovations bring stress, unexpected complications and budget overruns. Depending on the age of your current home, you may also have to jump through additional hoops to meet newer building code requirements.

Purchasing a new home could actually cost you less monthly than renovating your home depending on its age, and types of renovations you’re considering. If you intend on financing renovation costs,  find out how much you will be adding to your existing mortgage, home equity loan or line of credit  versus obtaining a new home mortgage.

Keep in mind that even if you renovate your older home, in a future buyer’s eyes, it’s still an older home. It is a good idea to have a sense of the market activity in your neighborhood to consider trading up or renovating your current home. The main purpose of home renovations is primarily to increase your home’s enjoyment. While you may be able to recoup some or most of the costs during the home’s sale, there are no guarantees.

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Opening Doors for Homebuyers!

Opening Doors for Homebuyers!

The Federal Deposit Insurance Corporation is the first of six financial regulators to release the final version of the long-awaited qualified residential mortgage (QRM) rule. The National Association of Realtors applauds this action because it will make possible to incorporate rules that include a broad definition for Qualified Mortgage standards implemented earlier this year.

Got your House?

Got your House?

Under the QRM rule, loans are generally considered qualified if the borrower’s debt-to-income ratio is 43 percent, among other things and there is not onerous down payment requirement, as regulators had originally proposed.

The NAR strongly opposed earlier versions of the rule that included 20 and 30 percent down payment requirements, which would have denied millions of Americans access to the lowest-cost and safest mortgages

For lenders, having these two rules in alignment provides the clarity they’ve long been asking for, widening and deepening loan eligibility and availability, which has been one of the main stumbling blocks to increased home sales.

Homebuyers will have now more credit availability reflecting an increase in home purchases, and refis. Way to go!