Find Out Why More Than Half of Buyers are Wrong About Down Payments

True or false: if you’re buying a home, you need to have at least a 20% down payment? If you answered true, you aren’t alone—so did 62% of Americans.

But in reality, that couldn’t be further from the truth—and you don’t have put off your home-buying dreams just because you can’t come up with 20% down!

While a 20% down payment will help you avoid private mortgage insurance (PMI), it isn’t some sort of home-buying hurdle that you must clear in order to buy. In fact, it’s far from the most common amount that U.S. buyers put down!

Here’s the truth about down payments—and why you shouldn’t let that 20% number prevent you from reaching your buying goals.

The Truth about Down Payments

A piggy bank standing against a white background.

According to NerdWallet’s 2019 Home Buyer Report, around 6 in 10 Americans think you need a 20% down payment in order to buy a house. Because of this, they also tend to think that it takes several years to come up with the necessary funds for buying.

Unfortunately, this way of thinking unnecessarily postpones plenty of people’s home-buying dreams!

The truth? The most common down payment amount—put forward by around 32% of buyers—was just 5% or less. Put that in terms of concrete amounts, and it translates to just $7,500 on a $150,000 home or $15,000 on a $300,000 home.

Other Common Down Payment Amounts

A single dollar bill sitting on a wooden surface.

While 5% or less is the most common down payment amount, it’s still just one of the many options that buyers choose. Here’s how the rest of the numbers break down:

  • 16% of buyers put down 6 – 10%
  • 23% of buyers put down 11 – 20%
  • 18% of buyers put down more than 20%
  • 10% of buyers bought their home outright

A 20% down payment is a great goal, but you don’t have to feel locked into that amount! Instead, consider how much money you’d feel comfortable with putting down, then work from there.

Buyers are Optimistic

A woman packing up her home and writing on a cardboard box.

Despite prevailing misconceptions about down payments, buyers are still feeling optimistic about the market. Around 42% of Americans feel better about their home-buying prospects this year, which is up almost 20% from last year.

Additionally, 44% of people say that the current economic and political conditions make them more likely to buy in the next year, which is around a 10% increase from last year.

Long story short? Now’s a great time to buy!

Find Your Dream Triangle Home

Buying a home is major step, so it’s important that you have trusted and experienced professionals on your side. At Linda Craft & Team REALTORS®, we have over 300 years of combined real estate experience, making us well-equipped to provide you with everything you need to find home-buying success.

Take some time to explore our resources for home-buyers, learn a little more about what our past clients have to say, and use our specialized search tool to narrow down your options. Once you’re ready to get started, we’d love to talk details!

Boost Your Equity over the Next Five Years with One Important Decision

Dipping your toes in the waters of home-buying? Based on the latest numbers, you may want to consider jumping in. In fact, buying a home right now could lead to an equity boost of almost $50,000 in the next five years!

Take a look at a few numbers from the experts, see where home prices are headed, and learn how the Linda Craft & Team REALTORS® can help you today.

Home Prices are Steadily Rising

A computer with graphs and charts.

According to the most recent Home Price Expectation Survey (HPES), home values will appreciate by 4.1% by the end of 2019. That trend will continue well past this year, as well, with an average annual appreciation of 3.2% over the next five years. By 2023, you can expect a staggering 16.8% cumulative jump!

Maybe you’re thinking that those numbers are a little optimistic. We don’t blame you—but even the more pessimistic experts estimate a 6.7% cumulative appreciation over the next five years.

What This Means for You

A miniature house and key.

Assuming those numbers all pan out, buying a home right now could mean major profits in the future. For example: let’s say you find a home you love, you make an offer, and you close for $250,000. By next year, that home’s value will have jumped to $260,000. By 2022, it’ll be almost $275,000. And by 2025? You’re looking at $292,000, a $42,000 jump since your initial purchase.

These numbers might sound too good to be true, but they’re calculated by a panel of over 100 economists, investment strategists, and housing market analysts.

Gearing up to Buy a Home?

A house surrounded by trees and greenery.

Sold on buying a home? In all honestly, you won’t find a much better time than now. With mortgage rates still hovering at near-record lows and home prices steadily ticking up, you could buy a new home for a great price now and make an amazing profit when you list it later. Your future self—and future equity—will thank you.

Trust Linda Craft & Team REALTORS®

Buying a home is a big decision, and one that you want to be well-equipped for. Luckily, the professionals at Linda Craft & Team REALTORS® have over 100 years of combined real estate experience in the Triangle area. Not only can we guide you to the best listings on the market, but we can also offer a wide variety of resources along the way.

Are you ready to buy a home and boost your equity? Give our team a call today!

Checking in on the Trends: The Positives and Negatives of Today’s Housing Market

Real estate trends are prone to change. After all, there are many factors that play into home prices and mortgage rates, and as the economy changes, the real estate market follows suit.

If you want to get the best possible outcome to your real estate endeavor, staying updated on current real estate trends is crucial to your buying and selling success.

Here are the three biggest changes currently happening in the housing market—and what they mean for buyers and sellers!

Interest Rates are Low…For Now

A man looking at numbers on a laptop.

Interest rates play a huge part in the overall cost of your home, and right now, they’re the lowest they’ve been in years. As of June, rates are hovering right around 3.8%. Back in March, they were as high as 4.4%!

According to the latest info from Freddie Mac, those numbers could be here to stay for a while, but with the current unpredictability of the housing market, there’s no guarantee. So the sooner you buy, the better.

Tariffs Could Drive up Prices

A construction area.

What could tariffs on China possibly have to do with the housing market? Well, many of the tariffs will affect building materials like lumber and steel—and the National Association of Home Builders estimates that around $10 billion worth of those supplies come from China.

With an already low inventory of homes, the increased of cost in building a new home will likely further exacerbate the problem. The tariffs began in June, so the effects may not be fully felt for a little while—meaning now is a great time to buy.

The Economy is Cooling off

A man carrying a newspaper and briefcase.

Previously, many economic experts thought we were headed for a recession this year. While that estimate has been pushed back, three leading surveys (the WSJ Survey of Economists, Duke University Survey of CFOs, and NABE Survey of Members) predict that it’ll happen sometime in the next 18 months.

That doesn’t mean there’s any need to panic, but it does mean that the current economic conditions might be the best that they’ll be for a while.

Ready to Buy Your Raleigh Home?

If you’re on the fence about buying or selling, the current housing trends indicate that now is the time to make some moves. Find your real estate success, and trust in the expertise and years of experience that Linda Craft & Team REALTORS® can provide.

Browse our buying resources, see what homes in Raleigh we love, and give us a call to get started!

Waiting to Buy Your New Raleigh Home? Here’s How Much It’ll Cost You

Buying a home is a big decision, one that requires plenty of thought and deliberation. While it’s important to take your time and feel confident in your choice, you might want speed up the process.

Why? Well, within the next year, buying is about to become significantly more expensive. Take a look at the breakdown of the numbers, and get started with your search soon!

Costs Are Rising

Graphs and charts on a laptop.

Right now, mortgage interest rates are lower than they’ve been in years—even lower than experts had predicted. Over the next year, though, they’re only expected to rise.

Not only are interest rates ticking up, home prices themselves are growing as well. Add those two factors together, and you’re also looking at increased mortgage payments.

Concrete Numbers

A man pulling money out of his wallet.

Let’s put those numbers in perspective. According to Freddie Mac projections, current interest rates are around 4.3%. Next year, they’ll reach 4.5%. While that might not seem like a big jump, when you’re talking about big ticket purchases—like homes, for example—.2% can mean a major difference in cost.

As far as home prices go, CoreLogic estimates around a 4.8% jump. Again, not huge at first glance, but when you start looking at the numbers—like, for example, $250,000 versus $262,000—that’s a difference of over $10,000!

Put interest rates and home values together, and you’ll find that mortgage payments are following suit. Considering the current numbers, your average mortgage payment would be $1,231.60. Next year, that number looks more like $1,321.04.

How Much Will Waiting Cost You?

A man holding a Starbucks coffee.

Bottom line? Waiting to buy may not seem like a big deal at first, but those increased costs will add up quickly—especially in a competitive market like Raleigh’s.

Say you buy that home you’ve had your eye on, but you don’t do it until next year. You can expect to pay an extra $89.44 monthly—around the same cost as your daily coffee or weekly sushi. Per year, you’re looking at $1,073.28—around the same cost as a cushy weekend getaway or the balance on those credit card statements.

Within 30 years? You’ll be paying an extra $32, 198—and when it comes to other ways we’d rather use that money, we can think of about a thousand.

Don’t Wait to Buy Your New Home

If you’re on the fence about buying, just know: waiting until next year is going to cost you big. About $32,000 big. Don’t put off buying your Raleigh home—let Linda Craft & Team REALTORS® help you get started today.

Browse our buying guides and resources, narrow down your options with our specialized search tool, and give us a call to start scheduling showings today!

Boomerang Buyers: Why a Past Foreclosure Shouldn’t Stop You from Buying Again

Facing a foreclosure can be traumatic. Putting all of that hard work and hard-earned money into buying a home, only to have it fall through in the end, is the worst-case scenario for many buyers—enough that it may prevent them from buying again.

While it’s hard to imagine the impact that a foreclosure has, it doesn’t mean that your home-owning dreams are over. In fact, many “boomerang buyers” are gearing up to give it another go!

What is a Boomerang Buyer?

A woman on her laptop.

Following the housing crisis—from 2006 to 2014—there were 7.3 million foreclosures and 1.9 million short sales, according to CoreLogic. After going through the foreclosure process, buyers must wait about seven years before applying for mortgage again, although that timeline may be shorter if you qualify for an FHA loan.

Those buyers who have previously undergone a foreclosure but have chosen to buy a home once again have been coined as “boomerang buyers”—and now that a few years have passed, there are more and more entering the market!

The Latest Numbers

Women looking at a laptop.

The NerdWallet‘s 2019 Home Buyer Report sheds some light on the latest trends for boomerang buyers. Out of the 13% of Americans who lost a home in the past ten years, around 60% have not re-entered the market, and around 20% say they’ll never buy a home again. Those numbers are certainly cautious, and also a tad bit grim.

The good news, though? The numbers are starting to look up.

In January 2016, 2.8 million people who experienced foreclosures, short sales, or bankruptcies had those incidents dropped off of their credit report. Since then, 11.5% of them have successfully obtained a new mortgage!

Not only that, but of the 13% Americans who lost a home, 39% say they plan on buying within the next three years, and a staggering 58% say they plan to buy within the next five.

The bottom line? There’s still hope, despite past foreclosures!

Know Your Options

A family in a brightly lit room.

The most important thing for boomerang buyers going forward is to be prepared. In fact, 74% of formerly foreclosed buyers say that they will be more cautious about choosing a lender, agent, or loan.

When it comes to knowing and working with the top trusted lenders in the area, the Linda Craft & Team REALTORS® has a vast network of options. Since we’ve been working around the Raleigh area for years, we can leverage our unique expertise to ensure that you’re matched with the best possible experts in the area.

Buying a home—especially for boomerang buyers—is intimidating. But when you work with our team, we’re dedicated to laying out all of your options and helping you select the most prudent choice.

Ready to Buy Again?

Then we’re here to help. Team up with Linda Craft & Team REALTORS®, and let us help you buy your next home. With our resources, expertise, and local knowledge, we’ll ensure that your buying journey is both successful and seamless.

Give us a call today to begin exploring all your Raleigh home-buying options!

As the Average Rent in Raleigh Increases… It Might Be Time to Look Into Buying

A beautiful kitchen with pots of fresh herbs in the window sill.

While renting has a number of unique benefits, it also has one big disadvantage in the Raleigh area: it’s skyrocketing.

While rent prices have gone up significantly every year since 2005, the average mortgage payment has actually decreased since then. In fact, according to Core Logic, the average rent has increased by 36% between 2005 and December 2018. In that same time period, the average monthly mortgage payment went down by 4%.

What does this mean for people living in Raleigh? It’s time to buy a home. Here’s why.

Rent Prices are Only Going to Continue Increasing

This goes without saying. For renters, there’s no assurance that your landlord won’t jack up the rent prices every year you continue living there. Landlords do this to keep up with inflation, but also because they can.

If you buy a home, however, you can expect payments that are both lower and set. Depending on the type of mortgage loan you take out to finance your home purchase, you can probably expect to pay the exact same amount every month during the term of your loan.

Is Buying a Home Really More Affordable?

A woman sitting at a desk, crunching numbers on a calculator with a small stack of papers in the other hand.

Yes. It all has to do with your mortgage. Your monthly mortgage payments depend heavily on your loan’s interest rates. Luckily, mortgage rates right now are some of the lowest they’ve been since 2005.

According to the Economists’ Outlook Blog, the percentage of income needed to purchase a home throughout the United States has decreased steadily since November of 2018. This is great news for potential buyers: it means that they’ll need less of their income to afford a home.

Want to Learn More About Buying a Home in Raleigh?

Linda Craft & Team REALTORS® is here to help. Give us a call today to begin exploring your home-buying options in Raleigh and the greater NC Triangle area. With our years of experience, in-depth market knowledge, and local real estate resources, we have everything you need to make a successful home purchase.

A Quick Study Guide on What “Affordability” Means in Raleigh Real Estate

A calculator next to an outline of market trends.When we talk about “affordability,” a lot of definitions may come to mind. For real estate specifically, affordability is something of a hot topic.

While it is true that buying a home is less affordable today than it was at any other time in the past decade, that has a lot to do with the real estate market crash of 2008.

If you’ve been in the real estate game for a while, you probably remember the flood of distressed properties that hit the market at this time. Due to the poor state of the economy, foreclosed and short sale homes were going for a huge discount. This rush of distressed homes actually damaged the value of other homes within a neighborhood.

Lucky for everyone involved in the real estate industry, things have since changed!

The Market Has Changed Since Then

A woman holding a tablet and looking at how the market has shifted over the past 10 years.Over the past decade or so, the market has recovered and prices have gone up right along with it. This isn’t a bad thing! A strong economy is good for everybody, especially those trying to sell their home for what it’s worth in the Triangle.

As such, both home prices and mortgage rates have increased. To make the best possible decision in the Raleigh real estate market, it’s important to have plenty of resources to rely on.

So Mortgage Rates Have Shifted

An open door with a set of house keys hanging from the key hole.When most buyers think of a home’s “affordability” they’re picturing two things in particular: the listing price of the home and the mortgage rate they’ll have to pay.

According to a CoreLogic report written by Andrew Lepage in late January, the “typical mortgage payment is a good proxy for affordability because it shows the monthly amount that a borrower would have to qualify for to get a mortgage to buy the median-priced U.S. home…”

While mortgage rates are slowly increasing, they are nowhere near the gargantuan rates of the 2006 housing boom (think an average monthly payment of $1,275…)

By the end of 2019, experts have projected the typical monthly mortgage payment to be about $963.

What Does That Mean for Buyers and Sellers?

Whether you’re thinking of buying or selling a home in Raleigh, please know that this is one of the most advantageous times to invest in real estate!

At Linda Craft & Team REALTORS®, we have the market expertise necessary to help you make a highly valuable transaction in this area. Please give us a call today to learn more about your Raleigh real estate options.

You Should Be Building Your Own Wealth… Not Your Landlord’s

There’s no doubt about it: buying a home is a daunting task. In fact, many potential buyers are nervous about the commitment and obligation that comes with buying a home.

If you’re more comfortable renting because you think you can’t afford buying a home, we should talk. The truth is, even when you’re a tenant, you’re still paying a mortgage. Unless you live completely rent-free with a relative, you’re helping someone build their equity and pay off their mortgage with your rent money every month.

You’re paying your landlord’s mortgage, and giving them a little extra for themselves each month. Wouldn’t you rather be building your own wealth?

If You’re Serious About Your Finances, You Should Buy a Home

Stacks of coins growing consecutively in size until they reach a large pot.Buying a home is one of the most surefire ways to build wealth for the long-term. Additionally, it gives you significant benefits to your credit score, as well as a sense of security.

When you own your home, you’re not at the mercy of your landlord—who may raise your rent whenever they see fit. Plus, owning your home means you can decorate and renovate it to match your unique tastes! You have complete freedom over what goes in and what comes out.

In Fact, It’s a Great Time to Buy in Raleigh

A white kitchen countertop with red flowers and a candle.The spring home-buying season is shaping up to be a good one. Interest rates are still historically low, while inventory only continues to grow. That means this spring will be a wonderful time to buy a home in Raleigh.

Get a head of the competition by beginning your home search today! Do some research and come up with an idea of what kind of home you’d like to buy.

If you need any help locating potential homes for sale in the area, please don’t hesitate to give us a call. At Linda Craft & Team REALTORS®, we have the inside scoop on the area’s best new listings.

Join the Home-Buying Ranks

It’s never too late (or too early!) to buy a home in Raleigh. Trust us, if you can afford to pay rent every month, you can afford to buy a home.

Plus, there are plenty of mortgage options out there that require little to no down payment! There’s no excuse not to take advantage of excellent market conditions and become a homeowner.

Market Update: Are Low Interest Rates Going to Stick Around?

If you’ve been eyeing the Triangle real estate market for a while, you’ve probably noticed interest rates rising in 2018. As we enter the first quarter of the new year, it’s important to stay on top of changing mortgage interest rates.

Right now, interest rates for mortgages in the United States are on a downward trend. As 2019 began, the interest rate for a 30-year fixed-rate mortgage dropped to just 4.51%. In addition, the growth of home prices are expected to slow.

So, what does it all mean?

It’s a Great Time to Buy a Home in Raleigh

A couple receiving the keys to their new home.If interest rates remain low, now is a wonderful time to apply for a mortgage and buy a home in Raleigh! As interest rates increased in 2018, many homebuyers decided to pause their search for a new home.

But, if you’re in the Raleigh real estate market, now is the time to pick the search back up! As we continue through 2019, the inventory of homes for sale in Raleigh is expected to pick back up, while interest rates are expected to grow slowly from 4.77 to about 4.93 by the end of the year.

How Much Will Interest Rates Increase in 2019?

A man and a woman meeting with a bank lender.Organizations like the Mortgage Bankers Association, Fannie Mae, and the National Association of Realtors project that interest rates will increase in 2019. However, they will not increase as rapidly or dramatically as they did in 2018.

The bottom line: if you’ve been hesitating on buying a home in Raleigh, it’s time to dive into the real estate market. Low interest rates, a growing inventory, and the slow growth of home prices have created ideal conditions for home buyers in Raleigh!

Ready to Find the Perfect Home in Raleigh?

Linda Craft & Team REALTORS® are here to help. With a combined 30 years of real estate experience in the Triangle, our team possesses the unique expertise necessary for making a highly successful home purchase.

We’re the #1 Triangle Real Estate Team for a reason. We offer customized services, in-depth real estate resources, and extensive real estate expertise to our Raleigh homebuyers. If you’re ready to expand your home search in Raleigh, then it’s time to give Linda Craft & Team REALTORS® a call.

The Real Benefit to Buying a Home in the Triangle

When it comes to real estate, it can be easy to get bogged down by the numbers. How much money are you going to spend on a home? Are you going to be able to build substantial equity over the years? If you decide to sell before your mortgage is paid off, will you have to renegotiate with the bank?

While the financial side of buying a home is important, what’s possibly even more significant is its emotional aspect. Buying a home has many intangible benefits; home is where you look forward to returning at the end of a long day. It’s the one place you can truly feel at peace and be yourself. It’s a place where you feel safe, loved, and protected.

The purchase of a home is unlike any other purchase you’ll ever make in your lifetime.

Owning a Home Brings Stability

Two parents teaching their daughter how to ride a bike.

When you buy a home, you’re not simply purchasing a property. You’re choosing to invest in a unique community that’s going to shape your way of life.

That’s why we’re so excited you’re exploring the Triangle as your new home. With its many different neighborhoods, towns, and cities, the Triangle offers a wide variety of different communities to choose from.

You Have Total Freedom Over Your Space

Unlike with renting, owning a home means having near-unlimited possibilities to customize your space as you see fit! Want to install a fire pit in the backyard? Interested in transforming your extra bedroom into a home gym? Eager to paint a wall in your kitchen with inspirational quotes? When you own a home, you have all the options in the world.

You’re also free to adopt pets, install Pinterest-inspired light fixtures, and do whatever else it takes to make your house feel like home.

There’s No Place Like Home

Adults clinking their drinks together over a lavish dinner spread.

The biggest reason to buy a house? To make it a home.

Create a space where you and your loved ones can come together to celebrate and to take care of one another. Set up a guest bedroom for when company visits, decorate your dining room for the holidays and the big events, and get excited about your new life in a community as charming as the Triangle!

Ready to Buy a Home in the Triangle?

We’d love to help you along. At Linda Craft & Team REALTORS®, we understand our buyers’ unique needs and expectations in a real estate transaction. As leading Triangle REALTORS®, we’re more then prepared to guide you towards a successful, lucrative, and emotionally fulfilling home purchase.

Get in touch with us today to learn more. In the meantime, browse some of our most popular Triangle homes for sale.