The choice to buy or rent has always been a difficult one, and the answer is not always the same for everybody.
In the beginning, buying a home IS more expensive than
renting. You need money for a down payment, closing costs, and
maybe even some new furniture!
But in the end, buying your home and holding onto it for the
long haul is almost ALWAYS the smarter financial move. Why
you ask?
1. The cost of your mortgage will remain fairly consistent even as
prices around you move up and up due to inflation and other
reasons. So even if your monthly payment is more in the first few
years, eventually you will actually be paying less than those
who are renting around you!
2. After paying a mortgage for 30 years, what you have is an asset
worth hundreds of thousands of dollars and no more mortgage
to pay! After 30 years of renting what do you have? Uhh… more
rent to pay.
Buying a home can be a scary thing, and don’t be deceived; it is
not something that should be done casually. It does require
planning and a personal assessment of your budget vs. the costs.
I do personally believe however, that it is something that every
reasonable individual or family should work and plan towards.
The first step is always to figure out where you stand financially
and what you can afford. The best way to do that is to speak with
an experienced loan professional. You may be surprised what is
out there in your budget! For example, if you’re paying $1000 a
month in rent, that translates to the monthly cost of a
$150-160,000 home, given today’s interest rate.
Give me a call and I can put you in touch with an experienced
loan professional that can analyze your options at no cost or
obligation. Even if you find you’re not quite ready to buy, at least
you will have a place to start and can begin planning for the
future.
The longer you wait in life to buy your first home, the longer it will
be before you can stop paying rent or a mortgage forever!
