In 2019, we saw a housing market full of low rates, high demand, and limited supply. Now, if you take a look into 2020’s real estate market trends, this can help any homeowner with a few years under the belt or a brand new Georgia first time home buyer know what to expect over the course of the next year.
Prices are on the Rise for the Georgia First Time Home Buyer
Same as in 2019, it looks like 2020 is still going to have a limited supply of inventory for Georgia first time home buyers. According to data from Redfin, most homeowners are staying in their homes 13 years or more, up from 8 years in 2010. And in some cities, homeownership is as high as 23 years. As the baby boomer generation remains in their homes, this can lead to fewer houses being readily available on the market, therefore a spike in prices.
According to Forbes, “In fact, a recent study from Freddie Mac shows that if today’s older adults- those born between 1931 and 1959- behaved like earlier generations, then an additional 1.6 million homes would have hit the market by the end of the last year.”
As a Georgia first-time home buyer, it’s important to get the best loan rate so you can snag that perfect home you’ve had your eye on before anyone else. As prices continue to rise, buyers are looking into suburbs on the outskirts of major metro areas that come with more affordable price tags and availability.
Refinancing Increases in Popularity
A surge in Google searches for refinancing shows this mortgage option is expanding into 2020 for those that are already homeowners. Refinancing not only helps with getting better interest rates, but a cash-out refinance can be used to help pay off debt or even home repairs.
Popular refinancing options to keep in mind include:
- Cash-Out Loan: A cash-out refinance takes equity out of your property which can then be used for home repairs, paying off debt, or used toward other important purchases. When you apply for a cash-out refinance loan, your new loan amount comes out to more than what you owe on your current mortgage so you’re able to pocket the cash difference.
- FHA Streamline: An FHA loan is a popular option for Georgia first time home buyers since it usually comes with a lower down payment and credit requirement. However, an FHA loan also comes with higher interest rates. This is why an FHA Streamline refinance is a good option to help lower your monthly interest payments for an FHA loan.
- HARP: A Home Affordable Refinance Program (HARP) loan is a great option if your home value has decreased since you first bought it. This refinance loan also works well if you owe more than the value on your home as it allows you to take advantage of today’s low rates despite their equity position.
At BrightPath, we have several home loans to help you get the best rates out of your mortgage.
Give us a call today at 888-222-6003 or complete our online form so one of our experienced mortgage specialists can help you secure the right home loan for your future.