Rent vs Buy – What is the Right Decision for You?

First time home buyers have to make a decision to continue renting or to start the process of purchasing a home. There are many factors to consider when deciding to rent vs buy.  Homeownership is a great boost to individual finances for the short term and in the future. 

Renters often worry about taking on a mortgage payment that could be larger than their current rent payment.  This is a valid concern, albeit short-sighted. The long term benefits of owning a home provide equity and options for future home purchases.  The main items to consider when purchasing a home are mortgage interest rates, down payment, homeowners insurance, closing costs, credit score, property taxes, homeowners association, home prices, and ultimately, mortgage payments.  A mortgage calculator can be very helpful when calculating your perspective mortgage payments.  

Another fear that many renters have when purchasing a home is maintenance and repairs.  The cost of a home is often the largest purchase that people make in their lives.  The mortgage payment must be paid every month as well as expenses like, electricity, water, sewer, trash, and potentially HOA fees. When the water heater breaks, or roof leaks, it is the responsibility of the homeowner to repair or replace these items.  The truth is, these cost are an investment into yourself and your future.  Every dollar that you put into your house will likely be multiplied when you decide to refinance or sell your home.  

The choice is simple.  Pay your landlord’s mortgage or pay your own.  It is extremely important to connect with a smart and creative mortgage loan officer when planning out your home loan.  There are many programs for first time home buyers to help with down payment, rate and payment reduction, and general ease of purchase.  When you are ready to check into the process of making your first home purchase contact Todd Uzzell – Mortgage Lender 480-330-1724.