Home Buying Advice in Anchorage: The High Cost of Waiting
by Dan Wolf
on Friday, July 10th, 2015 at 7:59am.
Housing experts warn renters too timid to jump into home ownership could be losing money to the tune of $65,000 a year. For renters in Anchorage, Alaska, the best home buying advice is to find something you can afford before prices climb even higher. A recent article by Bloomberg Business points out renters miss out in most metro areas. One of the main financial advantages to home buying now is the low-interest rates. If you think you can’t afford to buy in Anchorage, the real question is whether you can afford to wait. Over a 30-year period, buyers again a significant advantage over renters, the Bloomberg report showed.
Gathering the down payment
One of the first steps in home buying is lining up the financing. But how much money you need to borrow to buy a home in Anchorage depends on how much you will be putting down. According to Bloomberg, in 2005-2007, most people got their down payment money from the sale of a previous home. In 2008-2010, the money from a down payment tended to come from loans or gifts from family or friends. In 2011 to the current time period, a larger portion of people are using savings. Other secondary sources of income include financial gifts from family, the sale of a previous home or no down payment. With special programs through Fannie Mae and Freddie Mac, you can put down less than 3 percent as a first-time home buyer or someone who hasn’t owned in the past three years.
Choosing the mortgage
Some people can only qualify for the standard 30-year mortgage. If your lender says you make enough money, consider a 15-year fixed rate mortgage. Most experts suggest you avoid adjustable rate mortgages now since interest rates will likely rise. Any benefit you would have gotten as a home owner could be significantly reduced with an ARM when rates go up.
By working with an experienced Anchorage Realtor, you can find the perfect home that will appreciate in value over time. Whether you are relocating to Anchorage or have lived here your entire life, consider investing in your future with a home. At Wolf Real Estate, we love to help first-time homebuyers and move-up buyers with home selling and buying in Anchorage, Alaska. For more information about the advantages of home buying over renting, please contact us.