Brextastrophe or Brexportunity? What The Brexit Vote Means For Homebuyers And Homeowners
Brexit has led many investors to panic and sell off stocks, but smart investors can ride out the storm with a few savvy moves. In uncertain times, people tend to look for the safest possible investment, and one of the safest is in real estate. The time has never been better for people looking to buy a home, either for investment or as living space.
Let's take a look at how this can affect investors, homebuyers, and homeowners.
Real Estate Investors
Dropping Mortgage Rates
Interest rates are expected to stay low into the foreseeable future. Uncertainty created by Brexit is likely to keep the Fed from raising those rates.
Investors seeking a more diverse real estate portfolio are buying mortgages at an accelerated rate because prime mortgages (loans made to people with good credit) are a pretty safe place to park money. Since there are more dollars available to lend, the cost of those dollars (the interest rate) will drop further.
If you've been considering buying an investment property, the time could be right. Low rates and rising property values could make it a valuable part of your retirement strategy.
Easier Mortgage Requirements
Another benefit of increased availability is an easing of mortgage requirements. Many people with less than optimal credit have been afraid to apply for a mortgage for fear of being declined. The increased availability of credit, though, may make mortgages easier to get. A community lender like Health Care Family Credit Union can offer borrowers personal guidance throughout the process.
If you're a potential homebuyer with very good credit and have been searching for a while with little success, it may be time to take another look at payment projections and re-evaluate what you can afford. With interest rates approaching 3-year lows, you may be able to find an affordable payment on a more expensive house.
If you own a home and have been thinking about selling, now's a great time. Cheap loans and rising rents will continue pushing more people into the housing market, meaning prices will continue to increase. It's a good time to test the waters, and see what your home might be worth.
If you're looking to remodel, the current low rates on a home equity line of credit could help you make that a reality. Now is a great time to refinance, as well. If your mortgage is more than 10 years old, or if your mortgage was approved when you had less than sterling credit, you could qualify for a significant savings in monthly payment. This could take some pressure off your budget each month. Rather than being a time for panic, the Brexit vote is a time of opportunity for disciplined investors. You can do it, and Health Care Family Credit Union can help!