with Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
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91% of all renters think home ownership is a goal worth working towards. But a lot of Americans were hit hard by the 2007-2008 financial crisis and ensuing recession, and had to dip into their savings. As a result, many potential first-time home buyers – people with good credit histories and steady income profiles – just do not have enough saved up for a down payment on a house. Recognizing this, mortgage giants – Freddie Mac and Fannie Mae – are considering a move to lower mortgage down payment requirements from 5% to 3%, without compromising on other credit evaluation benchmarks. This should get buyers back in to the housing market. That said, home buying may not be for everyone and home ownership comes with potentially large hidden expenses that home buyers should budget for – so consider your finances and future plans carefully, and if you plan to buy a house, make sure you budget for future repairs and expenses.
But renting too may get more attractive in 2015 as a surge of new apartment units across the country create more supply and a potential drop in rental rates. So 2015 appears to be shaping up pretty well for home buyers and those who choose to rent instead.