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Renting Vs Buying A Home
This is a question many prospective home buyers agonize over when contemplating "taking the plunge" into homeownership. While buying a home can be an exciting experience, it is not a decision to be taken lightly.
For most people, it is the single largest financial transaction they will ever make. Therefore, it is extremely important that you arm yourself with the knowledge necessary to make an informed decision.
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Mortgage Payment vs Rent Payment
It is not as simple as monthly mortgage payment vs. monthly rent. A big portion of your mortgage payment is tax deductible while rent is not. So your mortgage payment will be offset by your tax savings. In effect, the IRS will be subsidizing your housing expense.
You will have to put up some money for down payment and closing costs. If you continue to rent, that money could be invested for income, assuming you are not tempted to spend it. You could look at a mortgage payment as an automatic savings plan! |
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With each mortgage payment, your loan balance decreases and your equity in the home grows. Your rent payment however, just helps your landlord pay off his or her mortgage.
There are costs involved in buying and selling a home so depending on how long you intend to live there, you may or may not recover your initial investment.
Everyone’s situation is different, there is no single answer to the question; is it better to buy a home or just rent? You must consider your unique situation and run the numbers to compare the two options.
Complete the form in the box above and you will be instantly redirected to our on-line Rent vs Buy Calculator. We will also send you our bonus report “15 Mistakes Home Buyers Make And How To Avoid Them”.
If you decide that buying is a good option for you, give us a call at 973-694-3659 and we will be happy to prequalify you so you will know how much home you can comfortable afford and what your payments will be like.
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