Last Updated on September 17, 2020 by Andrew Lee
Much thanks to the diverse, scenic landscapes of Wyoming, both its residents and visitors wake up to different majestic sights every day. Those in the west enjoy views of the mountains, while those in the east take in the beauty of the elevated prairies collectively known as the High Plains. But these aren’t the only things the state has to boast of: its great outdoors also provide everyone with numerous recreational and entertainment options, what it housing the Yellowstone National Park and Grand Teton National Park.
All these, plus its cost of living slightly lower than the national average, make it a premier location to invest in a house. Home buyers have plenty of options when it comes to cites, but the ones that garner the most attention are its top-ranking cities including Cheyenne, Rock Springs, and Green River. (Source: Livability.com)
Facts on the state’s home ownership status
The biggest component that drives the cost of living in The Equality State is housing. In the state, homes have a median value of $193,700, whereas the state’s is $195,300. (Source: Zillow)
This means that real estate here is slightly cheaper than some other states. Because of this, its homeownership rating has gone up to 69.9% over the years. (Source: U. S. Bureau of Census)
Home buyers should note though that the property values still depend on the specific type of residential building. Houses come in four major classifications, including the following:
- Single-family homes: Average value of $150,389.38
- Condominiums: Average value of $256,243.05
- PUD homes: Average value of $374,136.52
- Townhomes: Average value of $132,129.05
Financing the purchase of a home
Like almost everywhere else in the country, residents of The Cowboy State have to rely on financing services when purchasing a home. In such cases, majority of the buying population seek the help of mortgage lenders.
There are several kinds of housing loans, but the fixed-rate and adjustable-rate mortgages (also referred to as ARMs or variable-rate mortgages) remain the most popular. Not everyone can immediately qualify though, since lenders have to consider a number of qualification factors. These include the applicant’s historical and current financial standing, credit score rating, existing debts, and of course, the amount the borrower is applying for.
Making a choice between the two
Since mortgages aren’t just huge loans, but also long-term contracts, everyone who wishes to secure one should come up with a sound financial plan. And preparation should involve determining when a fixed-rate mortgage offers a better solution than its adjustable-rate counterpart, or when an ARM will save them more money in the long run.
Asking themselves these questions will help borrowers figure out which one of the two best suits their budget, needs, and preferences:
- What selling price range they can afford and how much they are willing to spend;
- How much the required down payment is (usually 20% of the selling price), and if they have enough savings to meet it;
- How long they plan to live in the same dwelling;
- Whether they prefer the security and protection of having a loan which interest rate doesn’t change or the possibility of a considerable amount of savings in the event that their potential interest rate suddenly drops
It pays to establish one’s intended length of occupancy since that’ll help home buyers make the right choice between the two major mortgage types. A fixed-rate mortgage provides a better option for those whose plans involve living in the same residence long-term, while those who wish to stay only a few years in the same house may save more money on a variable-rate mortgage.
A quick overview on refinancing
Refinancing, as long as done right, can result in a much lower interest rate, considerable monthly payment reduction, faster equity building, and hastened loan repayment. Borrowers in Wyoming can seek the advice of the Home Affordable Refinance Program if they want to refinance their existing loan.
Wyoming Community Development Authority
USDA Rural Development
Home Affordable Refinance Program