Attention Renters: Opportunity is Knocking
With rates near historic lows and a rebounding housing market, there are many opportunities for first-time homebuyers. Factor in the current rent vs. buy cost analysis and you may find that homeownership makes good financial sense.
Consider these statistics:
• Buying a home is on average 30% cheaper than renting across the nation and in all of the 100 largest metro areas.
• Today’s rent payments are rising faster than incomes. With a 30-year fixed-rate mortgage, payments will remain the same for the life of the loan.
Affordability aside, homeownership provides you with an opportunity to build equity and stability over time, become a part of a community, and create a home that is uniquely yours.
If you are looking to buy and have a secure job, strong credit and money saved for a down payment of at least 5%, a lot is in your favor: many markets are still very affordable; mortgage rates are historically low; and home values, while moderating in appreciation, are expected to rise.
Keep in mind that with home values and mortgage rates rising, renting may soon become cheaper than buying in some markets. However reports show that rates will need to more than double in most markets for the math to side with renters. We haven’t seen rates that high since the late 1980s.
Remember that homeownership is not the right route for everyone – and for many families, renting makes sense based on financial circumstances, future plans, and desired lifestyle.
Are you ready for homeownership? Call us today to get started with the pre-approval process for a home loan – a critical step in buying a home.
© Freddie Mac