Stop Renting! Buy an Anchorage Home Now!

Stop Renting!  Buy an Anchorage home now!  Anchorage home prices continue to be more affordable, interest rates remain low and inventory levels are still good.  But why should you own an Anchorage home instead of renting one?  I'm glad you asked.  Here are a few things to consider when deciding to stop renting and start buying:

How long will you be in your Anchorage home?  The longer you wish to reside in a specific area, the more likely you should buy a home.  When you're a homeowner, the money you pay in your monthly mortgage goes towards paying down your principal, giving you ownership.  When you rent, you don't own any of the property you live in.  So, if you plan on staying in one area for at least a few years, owning a home makes good fiscal sense.

How much of a downpayment can you afford?  Lenders have become more stringent with their lending practices.  The ideal amount of a downpayment on an Anchorage home is 20%.  This will not only show the lender how serious you are to purchase your home, but it also saves you money by dismissing the need for PMI (private mortgage insurance) that is required when you borrow more than 80% on a home loan.  However, when you consider that 20% on a $150,000 home is $30,000, this can be a big chunk of change.  There are still plenty of loan programs available that will allow you to purchase an Anchorage for less than the recommended 20%, especially if your credit is in good standing.  Also keep in mind that your downpayment can't "suddenly appear" in your savings accounts.  It must be seasoned to show your financial responsibility.  Just ask me how this all works.

Are you ready for complete financial responsibility?  One of the "perks" of renting a home is that someone else is financially responsible if something breaks or needs to be replaced.  Owning a home comes with some costs.  One thing to consider about renting, though, is that you are also at the mercy of WHEN someone decides to fix something and WHAT they want to replace it with.  You are your own landlord when you own an Anchorage home.  You decide whom you will use to repair an item in your own home and what you will replace something with.  You also currently get the benefit of tax credits on some of the interest you pay on your home loan, which can add up to quite a bit over the first few years.  You don't get that when you rent.

There are plenty of great reasons to stop renting.  Buy an Anchorage home now instead.  If you need any help or have any questions, please feel free to contact me.  I've been in the real estate business for more than 25 years.

Pauline Hofseth, your Anchorage real estate specialist