Does it make more sense to rent or buy?
My trusted mortgage advisor John Broskie from Waterstone Mortgage agrees that now is a great time to buy a home. Here’s his reasoning.
Why is now the time to buy a home?
For one, interest rates are at historic lows—you can get a loan with a rate in the low 3s for a 15-year fixed mortgage or a rate in the higher 3s on a 30-year fixed mortgage. Over the last 50 years, rates have been as high as 8%, so comparatively, today’s homebuyers are talking about a lot of savings.
One of the best reasons to buy a house is that it acts as a forced savings account. Think about it: When you make your monthly payment, you’re paying interest to the lender, but the rest goes toward paying down your loan for the investment on your home. As time goes on, homes go up in value, and that equity you build up can counteract how much interest you pay on your loan. Once your house goes up enough in value, you’ll basically be living for free.
John even has a special program that allows him to type in your rent and your estimated purchase and see which path saves you more. In many cases, he’s seen people save over $100,000. That’s taking into consideration what people would make when they sell the house and pay real estate commission.
Another good reason to buy a home is for the feeling you get when you own the property. When you go home to a rental, there are restrictions on what you can do to make the place feel more like home. But if you own your own house, you have complete control.
On top of that, rental rates here in Orlando are out of control! Many of John’s clients buy a house and their monthly mortgage or loan payments are equal to or less than what they’re paying for rent. Especially with all the down payment assistance programs for people shopping near or under the $300,000 range, why even rent?
If you’re in need of any mortgage services, give John Broskie a call at (407) 493-3868 or email him at [email protected].
For any of your real estate needs, C.A.R.E. Network Realty is ready to serve. Remember that 5% of our commission goes to a charity of your choice when you close on a home. When you move with C.A.R.E. Network Realty, you really do get to make a difference.