As rental rates continue to climb nationally, why Rent when you can Buy? While rental rates keep climbing across the country it is also thought that interest rates are sure to follow. First off, we know that yearly Rental increases will hurt your pocketbooks. And, secondly, with the great rates being offered on fixed-rate mortgages, why not lock in a terrific rate today knowing the forecast is indicating a possible rate increase. When we review the charts of the Past and Future Inflation Scenarios given to us by Lawrence Yun, Chief Economist, National Association of REALTORS in his post – Rents Rising, Dec. 16, 2011. I have one point to make – look at the Mortgage payment – No increase in percent over time based on a 30 year fixed-rate mortgage.
In other words, why not get in while the going is good. Buyers could be making the same payment on their House as they are making right now on their Rental Property. With a fixed-rate mortgage you will never see an increase in the monthly payment over the life of the loan. Yes, of course, other factors will increase like groceries and college tuition – but your fixed-rate mortgage payment will remain the same. That, alone, is a great safety net to be able to count on your largest payment each month staying constant.
If you need to know exactly how to go about the entire process of purchasing a home and to stop renting, then join us for a Home Buyer Round Table. Click the link below to Register for one of the Home Buyer Round Table Events.
Kathy Toth, Keller Williams Market Center, Ann Arbor, MI