March 4, 2024
3 Factors That Impact Home Affordability
Horseshoes, four-leaf clovers, and the number 7... all symbols of good luck. When it comes to money moves, are you relying on luck or are you putting in the work to plan ahead? While there is definitely some luck involved in timing the housing market, there are specific things you can do today to plan ahead instead of crossing your fingers and toes.
Though homeownership is one of the most common ways to build long-term wealth through equity, it's been increasingly more difficult to afford a home in today's market, according to Freddie Mac. Ultimately, rent or buy, there will always be demand for a place to live – the question is, what is the right solution for you?
Let’s start by asking, is homeownership affordable to you? Here are three things to consider when answering this question:
1. Home prices: What are homes going for in your area? What does that equate to from a monthly payment standpoint?
2. Mortgage rates: Keep in mind, when rates change you can always consider refinancing, too.
3. Your income: Do you have the funds available for the upfront costs of homeownership? Does your income and lifestyle support this housing payment? If not, are you willing to make changes? Ensure you can make a home payment work within your income before committing.
There’s no telling what the market will look like next year or the year after that but making smart money moves can help balance the unpredictable factors of luck and risk. You may be wondering if now’s a good time to buy a home – so let’s find out! Visit the scheduler to get time with a LMY Financial Coach to talk through your situation or explore homebuying with the Credit Union for more. Good luck!
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