Interesting results of a recent study shows that buying a home is cheaper than renting…
Interesting results of a recent study by Trulia shows that buying a home is 44% cheaper than renting in 46 of 100 of the largest metros. Which of course, does not include Anderson County, Oconee County or Pickens County. They do however say that it is 50% cheaper to buy in Greenville.
What else did Trulia say?
Well they say that homes are still cheaper to buy than to rent because of the super low mortgage rates available today. Which should make anyone interested in buying a home ask themselves IF they can take advantage of these low rates…
And to find out if you can get a super low mortgage rate means you will need to talk to a mortgage lender. It could be your bank or credit union. Or you could look in the Yellow Pages. Or do some searching online. Or ask friends and family. Or ask me.
The Take Away:
To be completely honest, buying may not make good sense for everyone. If you are not going to stay in the home for at least 3 years and take advantage of all the tax deductions, then it could be that renting makes more sense.
Buying a home is a serious financial decision and not something you should rush into without doing your homework first. And the first step is to talk to a lender about the various mortgages and their advantages and disadvantages. Some things you MUST remember to discuss with your lender:
- How long you intend to stay in the home
- How much $ you need for down payment and closing costs
- If a comfortable monthly payment for you is X, then what is your maximum price
There are many other things to consider when getting a mortgage. Such as whether or not mortgage rates will continue to stay this low. Since the Federal Reserve recently said they are going to keep short term interest rates low, that should keep mortgage rates low.
However, no one knows how long the low mortgage rates will last…