It’s a question that’s right up there with the chicken and the egg or coffee or tea. People of all different backgrounds have had an opinion on the great question of buying a home versus renting a home for as long as anyone can remember. It’s been debated forever, sometimes politely, sometimes hotly, but, truth be told the answer depends on each individual’s circumstances.
Cliffco Lays Out Options for Potential Homebuyers
At Cliffco Mortgage Bankers, we are in the business of helping potential home buyers find financing to purchase property. We’ll lay out your opinions for you and help you decide if buying a home is right for you. So we want to lay out some of the issues you should be thinking about when deciding whether you should rent or buy your home.
Making Sure You Have the Money to Buy
It will come as no surprise to anyone who’s looked into buying a home that it can be a costly proposition. How costly will depend on a number of factors. A big question, obviously is whether or not you can afford your mortgage payment. The Cliffco Mortgage Calculator can help give you an idea of how much of a monthly mortgage payment you can afford.
But there’s a whole lot of other fees and payments you need to be able to pay for if you’re considering home ownership, according to Investopedia. They include:
- property taxes
- repairs and maintenance
- trash pickup
- water and sewer service
- homeowner’s insurance
- lender-required flood insurance, in some areas
Mortgages run for a long time. Most people opt for 30-year loans but even if you opt for a 15-year mortgage, which is normally going to mean a higher monthly payment, that’s a long term commitment. You are going to need to feel comfortable being able to make these payments for the long haul.
Renters on the other hand, have more financial certainty. They know what their monthly payment is going to be. Typically, that payment is lower than a mortgage payment and a rental lease is almost certainly not a 30-year agreement. And while homeowners also know what their mortgage costs will be, renters often don’t have to worry about paying for repairs to their living space. They also may not have to buy furnishings or appliances, or pay utilities depending on the terms of their agreement.
Knowing Long Term Mortgage Plans
But renters don’t build equity in their home. When you’re done paying off your mortgage, you own the home outright and your investment in the property should appreciate. All of this takes time, which is why you need to have some idea of how long you’re staying in the property you buy.
“Given certain parameters, I can tell you that if you intend to be in a home for three to five years, it is almost always better to buy,” Matt Brady, a California-based loan officer told the San Diego Union-Tribune. If you’re only staying a short time, it may not be worth the closing costs you’d pay for a home.
Cliffco Will Help You Find a Loan That’s Right for You
If you’re thinking of buying property you need to consider your financial situation and how long you plan to be living in the new home. You’ll also need to learn about loans that may help you be in a position to buy. That’s where Cliffco can help. We can help you find the home loan that makes sense for you. Contact us today.