HomeBuyer University: Buying a Home, Just Got Easier
Course 2: Things Every Home Buyer Should Know
Step 1: Mortgage Approval Factors
Step 2: Understanding Mortgage Payments
Renting vs. Buying
Several things should be taken into consideration when deciding between buying a home or renting something. Although most considerations remain the same across the country, some could differ based your financial situation and the current real estate market. The following information may help you decide which option best meets your needs.
Some potential reasons to rent:
- You do not intend to live in the area for more than a year or two.
- You are uncertain about job security.
- You do not want to manage the upkeep of a single family residence.
- Renting also allows you to adjust to loss of employment by transitioning to a lower payment, thereby minimizing monthly costs.
Some potential reasons to purchase a home:
- Real estate typically builds equity for a good return on investment.
- You can usually own a home for a similar monthly payment vs. renting something.
- You intend to live in the region for more than a couple of years.
- Potential tax deductions for loan interest and property taxes.
- Purchasing a property usually affords you more living space.
- You can customize and upgrade your property as you need and want to.
TIP: Estimate the cost of buying a home versus renting something. (You will base this estimation on current interest rates and the present real estate prices). When prices of homes are trending downward, prices for rentals may not follow the same trend. Therefore, a slow real estate market can be the opportune time to purchase a home.
However, before you do anything:
- Contact a real estate agent for current real estate market details, and…
- Consult with a CT mortgage lender to help you calculate potential mortgage payments.
Only with current information, can you make an educated decision.