Is It Better To Buy A Home Or Continue To Rent?
November 25, 2021
When it comes to housing, is it a better financial decision to keep renting or to buy a home? How do you know if buying is the right move for you? Here are some questions to ask yourself to help you make the best decision for your situation.
Can you afford to own a house?
When you think of homeownership, you may only be considering the mortgage payment, but there is much more to owning a home. With homeownership you also have property taxes, homeowner’s association fees, landscaping costs, home repairs, general upkeep, and more. However, you also have an investment and a place to live that you can make your own.
You need to have a clear understanding of your financial position before pursuing a mortgage. This includes knowing your credit score, total debt, and total income. You then need to use that information to determine your financial goals.
Is this the right time to buy?
To answer this question, think about why you want to buy a home. Is it because you have been told that you should, or do you think it’s the best investment for you? You need to be honest about your reasons before pursuing homeownership.
What are the pros of owning a home? What are the pros of renting?
In general, the pros of owning a home are having more space and the ability to make the home your own with through decorating, remodeling, and more. Owning a home is an investment and you may make money from selling it. Conversely, you will not make money from renting.
Renting has its pros, too. As a renter you will not have maintenance costs nor will you have to pay property taxes. Moving is usually easier as a renter because you live in a smaller space.
The bottom line is that you need to evaluate your financial situation and know your goals before deciding to buy a home.
MSUFCU is here to help with mortgages offered in 12 states and an exclusive First Time Homebuyer loan option, which allows first-time homebuyers to choose from 10-, 15-, 20- and 30-year terms with a fixed or variable rate and a down payment as low as 3%. Apply through the MSUFCU Mobile app to get preapproved and enjoy a 90-day preapproval rate lock. In addition, MSUFCU offers construction loans, home improvement loans, and refinancing options. For more information, visit msufcu.org/mortgages.
Tags: Home Ownership, Money Management, Borrowing Money