Wednesday, August 10, 2011
UNBELIEVABLE RATES
FYI interest rates are at 3.875% today!!! That is as low as I have ever seen them. On a $200,000 mortgage the difference between a 3.875% rate and a 5% rate is $133 a month.
Monday, August 8, 2011
RENTING VS BUYING THE PROS & CONS
So many of you find yourselves asking yourself should I continue to rent or should I go ahead and buy. One of the main things to think about is do I have the finances to buy a place and am I ready for that committment. Below is a list of the pros and cons to buying a home vs renting a home.
PROS FOR RENTING
You are flexible to move around. After your lease is up you are able to move without having to sell your home.
Your money is not tied up. If something happened and you needed cash it wouldn't be tied up in your home.
Typically if an appliance or something else breaks the landlord is responsible to fix it.
CONS FOR RENTING
There is a chance that the landlord could sell the property without you knowing.
You are typically not able to remodel, paint, or make the place your own.
If home prices are going up you are not building equity from owning a home.
Your rent is not tax deductable.
PROS FOR BUYING
Part of your motgage payment is tax deductable which could save you thousands each year.
You are able to remodel or fix up your house any way you want to.
If the market goes up you are building equity.
You feel great about owning and you don't have to worry about a landlord or even getting the property sold without you knowing.
Getting a loan and making your mortgage payment each month is a great way to build your credit.
There are some great prices on homes and interest rates are honestly at an all time low.
CONS FOR BUYING
You have more responsibilities such as yard work, a mortgage, and taxes.
In a bad market the home could depreciate.
You are not as flexible. If you want to move most likely you would have to sell your home.
If you are deciding to whether it is a good time to buy or if you want to continue to rent this is a decision you should take seriously. There are pros and cons to each and you just need to figure out if you can afford a home and if you are ready for the committment.
PROS FOR RENTING
You are flexible to move around. After your lease is up you are able to move without having to sell your home.
Your money is not tied up. If something happened and you needed cash it wouldn't be tied up in your home.
Typically if an appliance or something else breaks the landlord is responsible to fix it.
CONS FOR RENTING
There is a chance that the landlord could sell the property without you knowing.
You are typically not able to remodel, paint, or make the place your own.
If home prices are going up you are not building equity from owning a home.
Your rent is not tax deductable.
PROS FOR BUYING
Part of your motgage payment is tax deductable which could save you thousands each year.
You are able to remodel or fix up your house any way you want to.
If the market goes up you are building equity.
You feel great about owning and you don't have to worry about a landlord or even getting the property sold without you knowing.
Getting a loan and making your mortgage payment each month is a great way to build your credit.
There are some great prices on homes and interest rates are honestly at an all time low.
CONS FOR BUYING
You have more responsibilities such as yard work, a mortgage, and taxes.
In a bad market the home could depreciate.
You are not as flexible. If you want to move most likely you would have to sell your home.
If you are deciding to whether it is a good time to buy or if you want to continue to rent this is a decision you should take seriously. There are pros and cons to each and you just need to figure out if you can afford a home and if you are ready for the committment.
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