Buying a House in 2021

Is now a good time to buy a house? Here is what you should know.

2020 was a doozy. A global pandemic, nationwide protests and a presidential race had most people wishing it would end sooner than later. We can all feel a bit more at ease that we are in a new year, and for some of us that means HOUSE HUNTING! But is 2021 a good time to buy a house? Let’s look at some pros and cons.

Pros for Buying a House in 2021


Last year interest rate fell to historic lows and they are likely to stay low for some time. This means lower monthly interest payments on mortgages and the ability for some buyers to buy more expensive homes.


When you rent you make your payments and that money is gone. When you buy, you make mortgage payments toward your loan balance which in turn pays off your house over time. And your home value tends to increase over time too – building equity and making it a long-term investment. You can also refinance if you are in a cash crunch.


A credit score can be important in securing a mortgage. However, there are home loans that help people with poor credit. As you make regular payments, your credit score will increase over time. Your credit score may take a dip when you first borrow but as you pay the loan your credit will gradually increase.


Although apartments and condos can make a great living space for one or two people, it’s tough to grow a family in such small spaces. Buying a house gives you and your family room to grow and sometimes much needed privacy. A home is a great way to provide stability for children and is a great asset to pass down to them one day.

Cons for Buying a house in 2021


Things break down overtime. That’s just a fact of life. Something as expensive as a home can mean repair and/or maintenance can be expensive. Common maintenance includes:

  • Painting (indoor & outdoor)
  • yard work
  • fixing appliances
  • Drain and gutter clearing
  • plumbing issues
  • garage door maintenance
  • AC filter replacements
  • AC repair
  • Roof repair or replacement

Some recommend setting aside 1% of the purchase price of your home to cover home expenses. So if your home costs $300,000 you would set aside $3000 per year or $250 a month

  • Upfront Cost

It used to be that you had to have 20% of the total amount as a down payment. Today many home buyers can qualify with as little as 3% down and if you are a Veteran or currently serving in the U.S. Military there may even be loan options with no down payment required. However, there are still other upfront costs to consider. Generally, you want to have about 3% to 6% of the overall purchase price to cover other closing costs.

  • Not as Flexible

Renters enjoy the ability to be able to move or leave in a noticeably short amount of time. Owning a home usually means you’re going to be there for an average of five to 10 years. The good news is that your home will likely grow in value during that time and you will build equity. If you’re looking to move often, owning a home might not be the best purchase.

  • Bidding Wars and High Prices

Due to the interest rates being so low, many people are looking to buy. This is driving up the home prices to incredibly high prices and competition is fierce. Many times, homes are sold the first day that they’re listed which is great if you’re selling a home, but it can be tedious if you’re trying to buy.

For most families owning a home seems to be the right choice. For parents it’s a great way of building capital in their home. For kids, the stability of a single-family home, building neighborhood friendships, and having their own room all make for a great childhood. But only you can decide for yourself whether owning a home will be beneficial to you in your lifestyle.

If you are looking to buy, Amerifund Home Loans can help you find the best home loan to fit your budget and lifestyle. We are a highly reviewed team of experienced professionals ready to make the process easier and much less intimidating.

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