Barclays Bank in the UK is indeed offering mortgages to people with no money down?! Haven’t we been here before? You know how well that all turned out… This time, there’s a bit of a twist. In order to help young folks get into home-ownership the bank if offering home mortgages to those borrowers who lack the funds for a down-payment provided that they have a “helper” — typically your parent — who will put up 10% of the purchase price into a savings account. Provided that you have been making timely, consistent payments on your loan, after three years, the bank will release that savings account back to the “helper,” with any interest that was earned over the three years.
Are you in the market for a house? Can’t decide whether to buy or rent? Zillow has a simple calculator to help you determine if you should buy or rent your next house. As you can see from teh video below, the President of Zillow believes that the average break-even point is two years; if you plan to stay in your residence longer than that, you are better off buying than renting. Curiously, when I play through the estimates of home prices around here, the break-even point always seems to be about 7 years. A neighbor bought their house in 2007 and sold it in 2015. Their house didn’t appreciate, but they probably came out ahead compared to the rent that they would’ve had to pay.