There was a potential upwards interest rate hike last week that was pushed back maybe one more time. Rates remain VERY low, making buying the home you want more affordable – your purchase price is just part of the picture. If the home price is higher but the interest rate is lower, you may still come out ahead. That’s how important the interest rate is when buying.
Even with a potential rate hike in the remainder of 2015, rates are historically low. Rates of 6, 7 , 8 and in the double digits have been a part of many people’s mortgage realities in the past. Some of those people might be the parents of today’s potential home buyer. They really know how good today’s rates are and may be able and willing to help young potential homeowners with downpayment assistance so they can take advantage of the current opportunity.
A study from loanDepot LLC reported in Real Estate Economy Watch indicates that the number of parents who expect to provide assistance to their millennial-aged children will increase by 31% compared with the last five years. Half of those parents say the help will come in the form of downpayment assistance, 20% will cover closing costs and 20% will cosign.
Whatever is decided between parent and child is fine and what a gift it is to be able to help a child achieve homeownership, the path to building wealth. Keep in mind that financial assistance may need to be disclosed with a gift letter or other document when applying for a home loan.
“Move on this, kids!”
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First Weber sells real estate throughout Wisconsin: Metro Milwaukee and Southeastern WI, South Central Wisconsin, Southwest Wisconsin, Central Wisconsin, Northeast Wisconsin and Wisconsin’s great Northwoods. You can start searching for Wisconsin real estate and Wisconsin real estate agents at firstweber.com
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