Associate Broker, U.S. Coast Guard (Ret)
Fairfax Houses for Sale
It’s Time to Look at Fairfax Houses for Sale and Buy Now
There are some people who swear off the idea of owning a home while others believe that today is the best time to purchase among the many available Fairfax houses for sale. The advantages and disadvantages of owning a home has been a hot topic since the mortgage crisis a few years ago. Regardless of which side you are on, you must take a closer look at the four major financial advantages in owning a home so you can assess if this is suitable for you.
1. Low Mortgage Rate
One of the main reasons to buy a house in Fairfax VA today is that loan interest today is at an all time low. You can get a mortgage loan for as low as 3.25% for a 15-year payment period. Eventually, lower interest rates could make owning a home much more affordable compared to renting in DC area. Of course, you need to consider added expenses such as insurance, property tax, money for down payment, and maintenance when you are considering if you can really afford to buy your own home.
2. Low Prices of Fairfax Houses for Sale
Another financial advantage of buying a home in our present economy is that real estate prices are lower. To put this simply, real estate is still a bargain even in DC area where properties are considered expensive. If you have a property for listing, this is not a good thing, but if you are buying your home for the first time, then you’ll have a great chance to buy property at prices that only come once in a blue moon. As property prices usually rise, the increased prices will allow you to build your home equity.
3. Get a Chance to Hedge against Inflation
Owning a home is a formidable hedge against inflation. Take note that if your mortgage is at a fixed rate, the price that you pay for your home will not change regardless of what happens to the economy. The cost of Fairfax houses for sale once you purchase the property will have a locked effect for the loan term. Even flexible rate mortgages come with interest rate ceiling, so you will be aware of the possible increase of mortgage payments in the future.
Meanwhile, if inflation causes the prices to go up, rent could also go high. This makes owning a home much more affordable during high inflation.
4. You Can Start Building Your Equity
Buying from the current listings of Fairfax houses for sale today can give you the chance to build your equity, which refers to the value of the property that you actually own. For instance, if your home is valued at $280,000 and you owe $200,000 to the mortgage lender, then your equity is $80,000.
One good thing about mortgage at fixed rate is that every payment is composed of a principal and interest component. With every monthly payment, you will instantly decrease your outstanding loan balance. Hence, in every payment, you are investing in the ownership of your own home and you are owing less. This is a significant benefit that you don’t get from against paying rent, which is purely an out-of-pocket expense.
If you have questions about choosing from the list of Fairfax houses for sale from which to buy your own home, you can call Steve Lefave, Associate Broker, at 703-896-5849 (phone) or 703-599-1239 (mobile).