Until recently, home ownership was no bargain compared to renting, according to Paul Diggle, a housing economist at Capital Economics.
Recent data from the U.S. Census Bureau and published statistics from Thomson Datastream indicate that rising rents and falling mortgages are tipping the scales towards home ownership. The median monthly mortgage payment has fallen to about the same as a median monthly rent check.
Several economic factors have converged at the beginning of 2012 presenting a strong financial incentive for renters to buy a home. The combination of a drop in home prices, mortgage rates hitting all time lows and rents increasing due to demand creates a perfect argument to taking the plunge and buying a home.
Much of the decision to buy a house still depends on personal finances, career, family life or level of financial security and commitment. The prospective homeowner should be sure to take into account the total cost of owning by including maintenance, insurance and property taxes, tax savings from mortgage deductions.
Falling home prices combined with record low interest rates and rising rents may soon prompt renters to take a second look at buying.
St. Louis MORTGAGE INTEREST RATES for January 18, 2012:
- Conventional 30-Year Fixed 4.00%/ 4.190% APR
- Conventional 15-Year Fixed 3.125%/ 3.380% APR
- Conventional 5/1 ARM 2.500%/ 3.159% APR
- FHA/VA 30 Year Fixed 3.875%/ 4.085% APR
- Jumbo 5/1 ARM 2.75%/ 3.01% APR
- Jumbo 15 yr Fixed 3.625%/ 3.875% APR
- Jumbo 30 yr Fixed 4.875%/ 5.125% APR
*The above mortgage rates are based upon an 80% LTV, o/o single family with FICO scores of 720.
Paramount Mortgage is a locally owned Mortgage Banker celebrating our 41st year. Great rates and programs are secondary to what is most desired in a lender relationship: Integrity, Communication and Customer Satisfaction. Be to check out our website: www.paramountmortgage.com
For more information or if you have questions on mortgage rates you may contact me by phone at my direct line, (314) 372-4319, email at rfishel@paramountmortgage.com or you can visit our company website at http://www.paramountmortgage.com.
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