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Why 2020 Was a Great Year for Homeownership

Key points:

  • Despite the financial instability of 2020, it was actually a great year for homeownership.
  • Rock-bottom-low interest rates provided homeowners and buyers with a lot of fantastic real estate opportunities.
  • Interest rates are still low, so if you’re thinking of making a move, now is the time! Contact Linda Craft & Team today to learn more or get started.

2020 Offered Fantastic Homeownership Opportunities

Last year was a roller coaster of uncertainty. But it was also a surprisingly fruitful year for home owners and buyers—and real estate in general. Low mortgage rates were a large driving factor behind the surge in the market; interest rates dropped to their lowest point in history in early 2020. Here’s how you can still take advantage of rock-bottom interest rates in 2021.

Move up to a larger home

a spacious kitchen open to the family room

For many homeowners, 2020’s low interest rates presented a fantastic opportunity for moving up to a larger or more luxurious home. Many homeowners who’d gained significant equity in their homes opted to take advantage of low interest rates and trade in their current homes.

If you’ve lived in your home for a handful of years, you’ve likely gained more equity than you realize. Now is a great time to take advantage of low interest rates to upgrade—particularly if you’re spending more time at home these days!

Buy your first home

This past year, millions of buyers opted to save thousands of dollars on their home purchase by locking in to a low mortgage interest rate. First-time buyers who’d been priced out of the market in previous years suddenly found homeownership affordable again.

There are quite a number of financial benefits to owning a home—as well as numerous non-financial perks, too. If you’ve been considering purchasing a home of your own, then now is definitely the time to make a move.

Refinance your current home

homeowners refinancing their home

For millions of homeowners, refinancing was the best way to save thousands of dollars without having to make a move. Reducing your interest rate can save you money each month, as well as on your overall loan. However, there are closing costs associated with refinancing, so it’s always best to talk with your lender first.

Buyers Save Thousands with Low Interest Rates

The bottom line is that buying a home at a lower interest rate will save you thousands, or even tens of thousands, of dollars throughout the course of your loan. In 2019, the average mortgage rate was significantly higher than in 2020. The chart below shows just how much you could save with a lower interest rate.

a chart showing the savings of buyers using lower interest rates

Thinking About Making a Move in the Triangle?

If you’re ready to take advantage of rock-bottom interest rates, then now is the time to get moving! Contact Linda Craft & Team today to find out more about how we can help you find the right home at the right price. Call us at 919-235-0007 and let us put our 350+ years of Triangle real estate experience to work for you.

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