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How Does Rent-to-Own Work?
 If you want to buy a home, one agreement option available is rent-to-own. Of course, not every homeowner is going to agree to it, and it comes with a set of pros and cons.
The following is a breakdown of everything you should know about rent-to-own when it comes to buying a house.
The Basics
A rent-to-own purchase has appealing elements, but there are risks.
Basically, when you enter into this type of contract, you agree that you’ll rent a property for a set period of time before you then gain ownership. The time you rent can be a few months to several years, dependent upon your
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Mortgage Rates
U.S. averages as of May 2021:
30 yr. fixed: 2.97%
15 yr. fixed: 2.29%
5/1 yr. adj: 2.83%
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individual can own the property, or a company might.
The contract dictates that the seller will keep a certain amount of money from each
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Spring 2021 Real Estate Trends to Look For
 Spring is always an interesting and exciting time in real estate, so what are analysts expecting we can see this year?
Increasing Mortgage Rates
It appears, depending on how the economic recovery comes along, that mortgage rates could continue to increase. Rates have been on the rise for weeks, while earlier in the year, they were holding under 3%. Analysts believe that it would be a good time for borrowers to try and lock in low rates now, with the anticipation they’ll tick upward through the year.
The 30-year fixed-rate mortgage is anticipated to average 3.1% through the spring months, while it was averaging 2.9% during the first quarter of the year, according to Fannie
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PMI - It’s Not a Bad Thing
 One of a lender’s main jobs is to evaluate risk. If a lender looks at a loan application, what is the risk in making a home loan? How’s the credit look? Can the borrowers comfortably afford the new monthly payment? Is the property going to be owner-occupied or will it be a rental? How much down payment is involved? All of these questions and more must be answered before a final approval can be issued. Certainly having good credit is a positive as is affordability. Lenders also view rental properties as a higher risk than an owner-occupied home, thus the higher interest rate and additional down payment for a rental. But the down payment can carry considerable weight. The more down payment a borrower comes to the table with, the less risk for the lender.
It used to be that a minimum down payment could be 20 or 30% or more, depending upon the individual lender. Yet it’s obvious that kept a lot of folks out of a home, especially for first time
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The Law Offices of Fred Peet
55 Patchen Road
South Burlington, VT 05403
802-860-4767
800-683-3903 (toll free)
802-860-2822 (fax)
fpeet@peetlaw.com
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Meet Our Real Estate Law Team
Attorneys:
Fred V. Peet
Richard C. Maxson
Christopher M. Perra
Kevin J. Shortell
Paula LeBlanc
William Flender
Eric Derry
Paralegals/Legal Assistants:
Doreen Guthrie
Sherry Morin Barton
Amy Benway
David MacPeek
Shawn A. Nelson
Karen Eddy
Elise Martin
Marcy Brigham
Sheri Slack
Linnea Oosterman
Samantha Kittredge
Kristy Farnham
Carol Davis
Closing Coordinators:
Katy Baker
Laura Martin
Daily News and Advice
Read about the events shaping the Real Estate market today, find current interest rates, or browse the extensive library of advice and how-to articles written by some of the top experts in Real Estate. Updated each weekday.
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