With its diverse landscapes ranging from hills to mountains, there’s no longer a need to wonder why the West Virginians love their state. They have plenty of outdoor opportunities to enjoy, from biking to hiking, fishing to hunting, and whitewater rafting to skiing. But these aren’t the only reasons they choose to stay here, or why so many home buyers want to invest in a property here. The state also has several thriving industries, including aerospace, medicine, and chemical research, all of which contribute to the overall good quality of living here.

Just to name a few of the beautiful cities that attract the attention of home shoppers to The Mountain State are Charleston, Morgantown, and Huntington. (Source: Livability.com)

Affordable housing options contributing to low cost of living

Home buyers planning to invest on a property in this state will be happy to know that they would have to spend less here for real estate and they would enjoy a much lower cost of living than in many other parts of the country. The state’s median home value is only $101,500, while the countrywide median is $195,300. (Source: Zillow)

It’s also worthy to note that the state has a home ownership rating of 74.9%, which further proves that real estate is more affordable here. (Source: U. S. Bureau of Census)

Home ownership through obtaining a mortgage

Although housing prices are lower in WV, majority of buyers still have to rely on mortgages to finance their purchase. They come in two primary types, known as the fixed-rate and the adjustable-rate (also known as variable-rate) mortgages. Their primary difference lies on the applied interest rate.

It’s important for consumers to allot as much time as possible in preparing and planning their mortgage application, seeing as this is one, if not the biggest financial responsibility they would ever take on. They should first ensure that their (current and future) income is enough to cover the monthly mortgage payments. They should also determine how long they want to occupy the same house. In addition, they should factor in their credit score rating as well as the size of the savings they will use for making a down payment.

Fixed-rate mortgage basics

Most home buyers in the state favor fixed-rate mortgages, particularly those with a 30-year term. The term basically refers to the length of time a borrower has to make monthly repayments towards the loan.

The main reason for this is because such housing loans have an interest rate that won’t change even if the market suffers or performs poorly. Since the interest rate stays the same throughout the life of the loan, then they won’t have to worry about sudden changes in their monthly housing loan expenditures.

The locked-in interest rate is what makes these mortgages a better option for those with the intention of staying in the same house for a long period of time. Fixed-rate mortgages are ideal for home buyers who want to live in the same residence for a long period of time.

Adjustable-rate mortgage 101

In the event that a home buyer prioritizes a much lower interest rate – even for only a few years – then an adjustable-rate mortgage provides a good solution. These housing loans come with a rate much lower than those for the fixed-rate ones, although borrowers will only enjoy them for the first few years of the term. After the agreed-upon period, the rate will already follow the market movement: either up or down, although in most cases, it does the former.

Assistance for mortgage concerns

There are still a lot of people who find it hard to qualify for a mortgage due to several reasons, such as inability to meet down payment requirements or lower-than-average income. In such cases, the West Virginia Housing Development Fund can help. The organization offers help when it comes to down payment and closing costs. It also offers easier-to-afford home loans.

References:

West Virginia Housing Development Fund

USDA Rural Development