June 29, 2018
June 29, 2018
For decades, those looking to save money on housing costs have been told one thing – rent, don’t buy. And for decades, that advice was right.
But with rent on the rise across the country, the relevance of that wisdom is being called into question. Is it really less expensive to rent, when you could potentially lock down a mortgage with cheaper monthly rates?
The answer depends on your current financial situation, as well as where you’re at in life. Read on to find out if you could save a bundle by signing a mortgage rather than a lease.
Rent is increasing around the country, and it doesn’t seem to be slowing down anytime soon. Even smaller towns are feeling the housing squeeze. Meanwhile, interest rates are still reasonable – about 3.45% for 30-year mortgages and 2.76% for 15-years according to Freddie Mac.
If you choose to buy a home instead of rent, you’ll build equity, save money through homeowner tax deductions and potentially end up with a mortgage cheaper than your current monthly rent.
If you choose to wait to buy a home, prices may increase in your area and make it harder for you to find a home you can afford. Plus getting a mortgage allows you to lock down your housing costs for the next 15 years or more, while rents can increase suddenly – forcing you to move or pay up.
At one point in time, the idea of finding a lender online was ridiculous – but those days are long past. Choosing a lender online is incredibly safe today, and you can compare a variety of mortgage offers faster online than you can through brick-and-mortar banks.
Some mortgage providers can also show what you pre-qualify for, so you don’t have to fill out a bunch of applications to see if you’re even eligible for the homes you’re looking at. If you’re looking to test the waters of homeownership without having to set up an appointment and drive across town, this is the option for you.
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