Should you rent or buy a home?
Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting with home values and interest rates projected to climb.
Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship Management at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:
“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
And in case you didn’t think of it this way… unless you are living with your parents rent free, you are paying a mortgage – either your own mortgage or your landlord’s.
If you are worried about not having a 20% downpayment, you don’t need that much. There are many programs to help homes owners purchase with small downpayments.
Wondering how much home you could afford? It’s simple, whatever you are comfortable spending on rent should be the top mortgage payment you consider (even if you qualify for more).
Who should NOT buy a home? Contact us to find out!