Here’s how to get started — part 3
Are you dreaming about owning your own home?
If so, you’re not alone. And, whatever your timeline, it’s never too early to start planning. Bank of America’s 2020 Homebuyer Insights found that 89 percent of prospective buyers remain motivated to buy their first homes, and four in five consider saving for it a priority. More than half are either on pace or actively accelerating their home purchase plans. That’s not surprising, given today’s favorable interest rates.
Here are suggestions to get you started.
Not sure where to start?
The Homebuyer Insights found 80 percent of first-time homebuyers needed help understanding what they could afford. Begin by asking yourself, “How much should I borrow?” instead of, “How much could I borrow?” This helps you focus on the amount that comfortably fits your budget. Then, a general rule of thumb is to multiply your monthly income before taxes by 28 percent or use an online affordability calculator to do the math. The resulting dollar amount is typically how much a manageable monthly payment might be, including taxes, insurance, and private mortgage insurance.
Commitment offers specific solutions for modest-income and first-time homebuyers, including affordable mortgages, grant programs, resources and expertise.
Thanks to low interest rates and lending programs tailormade for low- and moderate-income and first-time buyers, homeownership may be well within your grasp. Take time now to check out your options and determine whether Bank of America’s mortgage programs could help you realize your dream of becoming a homeowner.