If you’ve been waiting for the perfect time to buy a new home, low-interest rates make right now an exciting time to consider making a move.
While there has been some upward movement, interest rates and APR for both fixed and adjustable-rate mortgages are at historic lows.
For homebuyers searching for the perfect incentive to buy their dream home, these low rates offer an excellent opportunity to lock in low rates for their mortgage duration.
A Perfect Time To Relocate To Small Town USA
Another factor impacting the local real estate market is the COVID-19 crisis. As a top vacation destination, people from big cities and metropolitan areas are rethinking where they want to live, and the Colorado Springs area is coming out as a winner.
City dwellers lost much about the cities they loved with business closures, lockdowns, and restrictions in place. And for some, this was enough to get them moving to other towns they enjoyed but didn’t have enough reason to move to before 2020.
Access to low-interest rate mortgage loans and other outside factors make the idea of relocating more attractive to anyone who is on the fence about where they want to put down roots and call home.
Real Estate Investors
Historically low-interest rates create an excellent opportunity for real estate investors to borrow money at a low cost.
For real estate investors adding to their property portfolio, a fixed-rate mortgage offers affordable financing for anyone using a “buy and hold” investment strategy.
Buying a second or vacation home are examples of when a 15 or 30 year fixed loan makes sense. Homeowners can offset some of the house costs by renting it out part-time, which is always an excellent way to generate rental revenues when the owner isn’t using it.
An Adjustable Rate Mortgage, or ARM, is another financing option available to real estate investors in the Colorado Springs area. In the short term, this type of loan can increase cash flow, which is often helpful for paying costs and expenses associated with renovations and rehabs.
Adjustable Rate Mortgages are ideal for real estate investors who fix and flip homes for a profit, are “value-add” investors, or have a shorter-term buy and hold investment strategy they follow.
Depending on the ARM’s underwriting, borrowers may only need to pay the loan’s interest for a set time. As you can imagine, this affords real estate investors who plan to hold the property for only a few months a favorable opportunity to execute their business plan.
As with any loan product, it’s critical to understand the loan terms to avoid surprises. When working with Adjustable Rate Mortgages, the terms of the agreement can change based on underwriting. Fixed-Rate Loans tend to be more stable and predictable.
In both cases, low-interest rates make now the best time to search for your new home in the upscale neighborhoods of Peyton Pines, Meridian Ranch, Monument, Black Forest, Woodmen Hills, and Northern Springs, Colorado.
Please contact Elite Realtor Jill McFeron at 719-648-3821 to start the discussion today for assistance buying or selling your Colorado Springs home!
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