Renting a House VS Getting a Coral Springs Home Loan
When you are trying to decide if renting a house or getting a is the best choice for you, it can help to weigh the benefits and the drawbacks. Your decision will depend on how your finances look, what kind of future plans you have, and what the real estate market looks like in the area you want to live.
The Ins and Outs of Renting
When you are renting a home, your rent payment is typically the same amount each month and can sometimes include other expenses such as your electric, gas, cable, internet, or water. When renting you will generally need first and last month’s rent as well as a security deposit. You will usually sign a 12 to a 36-month lease which locks your rent amount for the duration of your contract. Nearing the end of each rental period, your landlord can leave things as they were and renew your contract, change the terms of your rental agreement and increase your rent or sell the property leaving you with the uncomfortable requirement of moving again. When you are renting, the landlord will have to fix most significant issues that could go wrong in your home.
What Kind of House Payment Can I Afford?
There are a lot of different out there to help you determine what size loan you can get for a specific monthly payment; however, you need to consider more than how much you can afford monthly. Lenders often require between 3 and 20 percent of your new homes price paid upfront. You should save up to have a sizeable down payment as well as realize that not having a high enough down payment could result in private mortgage insurance which will cause a higher monthly bill. Unlike renting you will have to pay your own utilities, cable, internet, property taxes, and your own maintenance costs as well.
Renting a House
There are both good and bad merits of renting or owning a home. Here are a few of the advantages and disadvantages of renting.
- Lower upfront costs
- Smaller lease time frames
- No maintenance costs
- No loss of equity
- No property taxes
- Rent could raise over time
- The property could be sold while you live there
- Moving multiple times
- No home equity
- No tax cuts
Buying a Home
Here are a few of the advantages and disadvantages of buying a house.
- A chance to build equity
- Opportunity to build credit
- No landlord to sell out from under you
- Tax benefits
- The upfront costs require substantial amounts of money
- Loss of equity is possible
- Maintenance costs are your responsibility
If You Can Afford It, Getting a Coral Springs Home Loan is the Right Option
Though renting a house can be a short-term financial solution, the real American dream is homeownership, and it can be very rewarding. Buying a house is not only satisfying but also a significant investment. The best time to buy is when home prices are rising. Even if you do not plan to stay in your new house for long, you stand to earn a profit on purchasing a home and selling it when prices are higher.
If the following statements seem true for you, buying a home may be the right solution for you.
- Your future plans include you living in one location for at least 3 to 5 years.
- You could see yourself renting out all or part of your house if for some reason your financial situation changed.
- You know that you qualify for a home loan at a reasonable rate and monthly payments that you will be able to afford.
NHL Lending and Your Coral Springs Home Loan
If you are deliberating between renting a space and purchasing a home, contact us at today. One of our experienced loan officers will go over the options that we have to offer you. We can help you look at the kinds of houses you may be able to afford and go over the types of mortgages we provide. As a lender, we offer some of the best home loan rates in as well as some of the most comprehensive customer service. We want to make your decision to buy a home one of the most comfortable and exciting choices you have made.