The Benefits of Buying a New Home Now

Buying a home is a big decision. And with recent news about interest rate changes, rising rents, and homes selling quickly, you may have questions. You’re not alone! We’re here to help break down the benefits of buying a new home in the current housing market. Purchasing a new home can offer both short-term and long-term advantages, including lower long-term costs, a greater connection to your community, more control over your living space, and perhaps most importantly, peace of mind.

[gallery - asset not migrated]

Mortgage rates are still historically low

Did you know that while mortgage rates have risen as the post-pandemic economic recovery has continued, they are still low when compared with historic rates? It’s true. Today’s average mortgage rateis still well below the historical average of nearly 8%.

Payment options that work for you

Depending on your situation and needs, there are several loan types to choose from when purchasing a new home. An adjustable-rate mortgage offers a lower initial fixed rate for the first 5, 7 or 10 years of the loan, which makes it a good choice for buyers who expect to move before the loan rate adjusts or for those who plan to refinance in the future. Fixed rate mortgages guarantee the same rate for the entire term, which may suit buyers who plan to stay in their homes for a long time.

Utilizing a program tailored to new home financing is vital. Tri Pointe Connect®, Tri Pointe Homes’ affiliated mortgage company, offers a range of mortgage types and programs to help homebuyers with financing.

• Buying-down the mortgage interest rate to below-market lowers your monthly payment either for the first few years or permanently (depending on the program).

• Long-term mortgage interest rate locks that are designed to lock your rate while your home is under construction.

• Closing cost contributions from Tri Pointe Homes, when you choose to finance with Tri Pointe Connect, so you have lower out-of-pocket expenses at closing.

Rentswill likely continue to rise

Average rent prices have continued to increase – nationally, they rose 11.3% last year alone. Buying a home locks in your purchase price. Even if you choose an adjustable-rate mortgage, the base cost will not rise for the life of the loan, which helps to keep your housing costs relatively stable even while other costs increase with inflation. In addition to saving money on rent, owning a home may help you build long-term wealth. Unless you select an interest-only mortgage, each month, a portion of your payment is applied to the principal balance, which increases your home equity. Homes may also increase in value over time, allowing you to own a valuable asset that can later be sold or rented. For example, according to the U.S. Department of Housing and Urban Development Office of Policy Development and Research, the median single-family new home price in the U.S. in 2002 was $182,700. As of May 2022, nearly twenty years later, a market trends report from realtor.com shows the median single-family home list price has increased to $447,000.

Ultimately, home ownership offers many benefits that renting does not. While the cost of living may continue to rise, buying a home generally allows for financial stability and predictability in your monthly housing expenses. And it helps provide peace of mind that you have a place to call home.

Built differently to live differently

When you own a home rather than renting one, you have more freedom to personalize it to your own style and needs. We’re talking about more than just different paint colors on your walls. It’s about personalizing and creating a home that fits your needs and design aesthetics. Our homes are built to be Life-Changing by Design™, and they include modern conveniences and features that will take your new home to the next level. One example is the Tri Pointe Homes LivingSmart® program, which encompasses the latest in smart technology, energy-saving features, systems to help conserve water and our natural resources, and materials and equipment that help improve your home’s indoor air quality.

LivingSmart includes:

• EnergySmart® A way to make your home more energy efficient, which helps save you money in the long run.

• HealthSmart® Features, finishes, and filters that help contribute to healthier indoor air quality.

• HomeSmart® Technology that helps you stay comfortable, in control, and connected from anywhere.

• WaterSmart® A comprehensive effort to conserve water usage — from the plumbing fixtures to the appliances.

• EarthSmart® Features that make it easier to recycle and conserve natural resources.

A community you can call home

Picking the right home in a community that fits your lifestyle is an essential step in the homebuying process. Whether you’re a first-time homebuyer, a new-construction home seeker, or in the market for your forever home, having a long-term perspective is the key to finding the right home. Moving into a new home neighborhood helps you establish bonds to not only your home, but to your new neighbors and the community you’ll live in together. Ultimately, the homebuying journey is a personal one, so you’ll want to live in a home that’s the right fit for you — and truly life-changing for years to come.

ALL MATERIALS HAVE BEEN PREPARED FOR GENERAL INFORMATION PURPOSES ONLY. NOTHING HEREIN CONSTITUTES LEGAL, FINANCIAL, TAX OR ANY OTHER TYPE OF ADVICE AND IS NOT TO BE ACTED ON OR RELIED UPON AS SUCH. INFORMATION MAY NOT BE CURRENT OR COMPLETE, AND IS SUBJECT TO CHANGE WITHOUT NOTICE. NOTHING IN THE FOREGOING CONSTITUTES A WARRANTY OR GUARANTEE.