It’s a Good Time for Ole Miss Parents to Buy that Satellite Nest
If you have a child leaving the nest to attend the Ole Miss, you may want to consider a satellite nest instead of paying room a
nd board or renting off campus. If you reallocate the money earmarked for your child’s on-campus or off-campus housing to a real estate purchase, it might be a wise investment.
Several key factors have aligned to make investing in a condo or home for your college student, or yourself, a wise decision at this time. The National Association of Realtors reports that sales of existing homes fell in January for the third straight month. Existing home sales fell 1.2 percent from December to an annual rate of 4.94 million annualized units vs. the 5.05 million expected, the lowest since November 2015. Compared to last year, sales are down 8.5 percent. That tapering demand may result in more attractive prices for buyers.
In Oxford, sales have trended downward, driving up the inventory of houses and condos. In addition to better pricing, you may have more choices.
Another key factor is interest rates. Mortgage interest rates have decreased slightly from 4.83 percent in December 2018 to 4.62 percent in March 2019. These lower rates make it more affordable to carry a mortgage while your child is in college. If you have more than one child attending Ole Miss, the financial benefit is double.
There is more to it than mortgage interest rates. A good mortgage lender can answer all of your questions. Are there fees? What amortization term is best for you? Do you qualify for any particular programs that may be available? What type of mortgage loan will best fit your needs?