Our homes are one of the most important parts of our lives. No matter where you are in the country, knowing that you have somewhere to go home to is important. And for many, renting their home is the only thing that they have done throughout their lives. However, with interest rates falling lower and a wide range of properties on the market today, buying a home is something that you may want to consider.
Over the years, most people have avoided purchasing a home because they assume that it's just something that is out of their budget. But as recent reports from the Wall Street Journal have shown, that's no longer the case and in many locations, buying a home actually ends up costing less. For example, in Orlando, renters pay roughly $1.24 for every $1 dollar a buyer spends. That trend is apparent in a wide range of areas throughout the country.
So why is it that buying a home can be cheaper than renting? The big answer is simple – low interest rates. Ever since the economic crisis of the early to mid-2000s, interest rates have remained incredibly low. As such, those who apply for a loan and qualify for it will often end up with monthly payments that are lower than a rent payment would be.
These record low interest rates are only one part of the equation. We're in a buyer's market right now, and the large inventory of homes combined with motivated sellers means that you can often find homes with an overall purchase price that is lower than you might suspect. Mix this with the low interest rates, and you have a recipe for a very low monthly payment – often lower than rent can be.
Another thing that helps make buying a home stand out in today's marketplace is the fact that it's easier to actually qualify for a loan and buy the home you're dreaming of owning. Many don't buy simply because they don't think that they meet the financial requirements for doing so. But consider the following things that make it easier and more affordable to buy than ever:
Whether you're looking for a low-cost fixer upper or are ready to buy the home of your dreams, it's more possible than ever before to do so. And thanks to record low interest rates, it's also possible to save a tremendous amount of money on your monthly payments and end up with a mortgage payment that is lower than rent would be in your area.
Beyond just the low overall monthly payments, there are many additional factors at play where buying a home is concerned. In short, buying helps your financial future by giving you a major asset.
When you rent a home, you pay a monthly fee to live there – nothing more. But your mortgage payment is being applied towards a major investment that you own. And when you own, you're able to build equity in that home.
Equity is the amount of value the home has over what you owe on it, and it's an important part of any homeowner's financial portfolio. Your equity can be used to secure a home equity loan which in turn can be used to pay off existing debts, reduce credit card debt, remove student loans, complete home repairs, and more.
In short, that equity becomes a powerful financial tool that can help you make the right moves to improve your financial situation in various ways. But you can't get it as a renter. And that means that by buying a home you can often pay less than you would for rent while also improving your financial stability. It's a win-win situation that deserves your attention.
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