Mortgage rates are at record lows. Should you buy or rent?
The pros and cons of renting vs. buying a home.
What are the advantages of renting? It may seem that buying a
home is always the best thing, but not always.
First of all, you do not need a big down payment. The money to
move in to a rental is much lower than buying. That leaves money
in your pocket upfront. Plus, you don't have to stay in an apartment
any longer than the lease you sign. With a house, you are stuck
until you sell. Renting is certainly better if you think you will move
in the near future. Not all rental payments add to your credit score.
Check with your landlord. But it will show a mortgage company that
you have been making rent payments. Perhaps the best thing
about renting, is that you do have to pay for the upkeep. Normally
plumbing, electrical, etc. problems are paid and done by the landlord.
Plus, many rentals are a package deal. You may get trash, water, and
other utilities paid.
Yes, there are drawbacks to renting. You are not building equity in
the property for the future. You also cannot remodel and have the
place look like you want it. Not to mention the fact that your
rent may go up.
So, thinking about home buying instead of renting? Yes, there
are plenty of advantages. You build equity most of the time. Yes,
property values can drop, but in the long run, your house will
increase in value. It's a sound investment. The tax deduction you
get for mortgage interest is huge. But some states do have a renters
credit. You can do pretty much your choice with your home, from
landscaping, to interior decorating. It's your castle.
For more information on home loans, check out:VA Home Loans
and Home loans for teachers.
Whatever you decide, rent or buy, you can come out a winner either way!