6 Reasons to purchase a home in Naperville, IL with Naperville Real Estate Agent Joseph Graventi!
Right now there are a variety of factors that have come together to create the “perfect storm” for buying Naperville real estate. Here is a list of reasons why buying real estate in Naperville right now makes sense. REALTOR Joseph Graventi is your smart choice for Naperville IL real estate agent.
Rent has skyrocketed
According to a rent.com report, 88 percent of rental property managers have raised their rent and there has been an 8 percent hike in rental prices. In most cities, such as Naperville IL, rent is comparable to the price of a mortgage. According to Zillow, rent was outpacing home values in 2015.
Right now, it just doesn’t make sense to hand that money over to a landlord instead of putting it into your own appreciating asset, like a Naperville home.
Naperville home prices are still affordable right now
According to the National Association of Home Builders, an affordable home is one which the front end debt-to-income ratio is 28 percent or less. 62 percent of homes still meet this criterion in most metropolitan cities. This means that first-time homebuyers in Naperville, or those looking to upgrade, can still find great deals in this real estate market.
Interest rates are at record lows
Not only are real estate prices still affordable, but that combined with historically record low-interest rates, makes for a great time to buy real estate in Naperville IL. Interest rates on a 30 year fixed mortgage are around 4 percent. This means that even if house prices rise a bit, you’ll still be saving thousands of dollars in interest payments over the life of the mortgage.
Naperville Home Equity
Low home prices mixed with record low interest rates mean that both can only go up from here. Owning a home means that with each payment you make, you are building equity. As house prices rise, so does your equity. You can then borrow against your Naperville home equity and make some home improvements.
Year-end tax credits
Looking to buy a home at the end of the year? Buying a home in Naperville Il with real estate agent Joseph Graventi, by the end of the year can land you a nice tax deduction. You may be able to deduct closing costs, mortgage interest, and property tax! Check with your accountant to see what deductions may apply to your specific situation.
Along with affordable home prices and low-interest rates, mortgage insurance is a deal. If you’re not wanting to put 20 percent down on a Naperville home you will have to get mortgage insurance. One alternative to this is a loan with the FHA or Federal Housing Administration. The FHA is a government mortgage insurer that will back a loan with a down payment as low as 3.5 percent and low credit score to boot. The fees for around .85 percent which mean your monthly mortgage total will very low if you fund it this way.
Contact Naperville IL Real Estate Agent Joseph Graventi Today!
Joseph Graventi Real Estate Agent
943 Maple Avenue
Downers Grove, IL 60515
Email: [email protected]