One of the top homeownership benefits is protecting yourself from rising rents, by locking in your housing cost for the life of your mortgage.
Get the facts.
An article by Apartment List addressed rising rents by stating: “Despite seasonal slowdowns, rents are still up year-over-year in 89 of the 100 largest cities.” Additionally, the Urban Institute revealed that, “Over 11.1 million households, are severely cost burdened, spending at least half their income on rental housing.”
These households struggle to save for a rainy day and pay other bills, including groceries and healthcare.
It’s Cheaper to Buy Than Rent The results of the latest Rent vs. Buy Report from Trulia shows that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States. The range is an average of 6.5% less expensive in San Jose (CA), all the way up to 57% less expensive in Detroit (MI) and 37.4% nationwide! Know Your Options Perhaps you have already saved enough to buy your first home. A nationwide survey of about 24,000 renters found that 80% of millennial renters plan to eventually buy a house, but 72% cite affordability as their primary obstacle. Plus, 1-in-three millennial renters have concerns about their credit scores, and another 53% said down payment is an obstacle. Many first-time homebuyers who believe that they need a large down payment may be holding themselves back from their dream homes. As we have reported before, in many areas of the country, a first-time home buyer can save for a 3% down payment in less than two years. You may have already saved enough!
Bottom Line Don’t get caught in the trap that so many renters are currently in. If you are ready and willing to buy a home, find out if you are able. Have a professional help you determine if you are eligible for a mortgage.