Rent or Buy – Making the Right Choice
For many people, renting a home or apartment seems less-risky or easier than buying a home. However, it is important to think through all of the details. You may find that it makes sense to buy your own place—instead of remaining a renter. We’ve put together a few things you should consider to determine if buying a home instead of renting would be a better solution for you.
- You May Not Need that Huge Down Payment – One reason many people don’t buy and continue to rent is because they think that a huge down payment is a “must.” While some loan programs do require a significant down payment, other lending options may require less for a down payment, some offering 100% financing.
- Rent Goes Up – You never know when the owner of the property you rent will decide to raise the rent. However, with a 30-year fixed mortgage, you always know what your payment will be.
- You Will Save Money – Eventually – In nearly every scenario (unless you are living rent-free or in an extremely low-rent situation), there will come a time that you save money by purchasing instead of renting. Zillow offers a rent vs. buy calculator that shows you how much you will save.
- Either Way, You’re Paying a Mortgage – If you buy a home, you will have a mortgage payment each month. However, that payment builds equity in your home; equity you can borrow against later. When you pay rent, you are paying a mortgage too—just the owner’s mortgage instead of your own.
While deciding to become a home owner is a big decision, it is not something you need to face alone. The team at Liberty Financial is here to help. Whether you are still deciding whether you should rent or buy, or you are ready to look at mortgage options, we would love to assist you. Call or contact us online today for excellent advice and assistance every step of the way.