Typically, a weak housing market corresponds with a strong rental market. If the rental market is strong in your area, it may indicate weakness in the local housing market, which typically favors Buyers over Sellers.
When you buy a home with a fixed-rate mortgage, you can lock in a predictable monthly payment for 15 or 30 years. That means the largest part of your housing costs, principle and interest, are fixed. For some people, that stability, along with the sense of community that comes from being a homeowner, is enough to tip the scales toward home ownership.
If the monthly cost of buying vs. renting is comparable, you may consider some related factors to help you decide. Use the mortgage calculator under the “Finance Tab” on our website to find out which sales price is equal to what you are currently paying in rent. For example, if you are paying $2600-$2700 in rent per month that is equivalent to the principle and interest payment on a $500,000 Loan (5% 30-year fixed rate). Getting pre-approved for the loan is Step One. Your interest rate may be higher or lower depending on the amount you put down and your credit score. Email or call us and we will connect you with our preferred lenders.
When you rent, your landlord receives any appreciation and tax breaks associated with owning the property. If you plan on any significant remodeling, buying may be also preferable to renting. We are here to help you decide which is best for you!
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