Buying a home can be an adventure or an ordeal. People generally prefer homeownership over renting. When mortgage rates are low, and rent increases in big cities, buying a property would appear to be a much better option than renting. If you are considering the differences between buying vs renting a home, you should ask yourself the following questions...
Things to Consider When Buying a Home vs. Renting
- Do you want to move around rather than stay in one place for a long? If so, you may consider renting.
- You want an investment vehicle? If so, you may consider buying.
- Do you want someone else to do all the maintenance, pay property taxes, and the like? If so, renting might be for you.
While there are many things to consider before making your decision, the major factor that should influence you is how much you are willing to spend. You should also consider qualitative aspects that are important to you, like how much you can customize the property. Rentals are usually not highly customizable, but keep in mind that Home Owner Associations (HOAs) may restrict the customization of your home, too. Read more about Everything You Need to Know About Buying a Home.
Financially Buying a Home vs Renting
Financially, you will want to consider your current assets, your cash flows (i.e., what you bring home after taxes), and any liabilities you have. If you do not have many assets and your income is not high, you will probably want to stick to renting until you can get into a more stable financial situation. Use our Debt to Income Ratio calculator to help you determine what your remaining income is for the month. You can also figure out your monthly mortgage amount with various interest rates by utilizing our Mortgage Loan Calculator.
The landscape of purchasing a home can be complex so do not navigate the process by yourself – let Metro Credit Union help you. Meet Metro’s Mortgage Loan Originators – their expertise will answer all of your questions with the goal to find the financing option that best fits your needs.
Once you finalize your living arrangements and if you decide to move, here are tips to help you financially prepare for a move from Metro’s Save and Succeed.
Metro Credit Union | Best Home Mortgage Loans in Omaha, NE
Metro Credit Union Mortgage is the home lending side of Metro Credit Union. Buying your first home is a big step, but it doesn't have to be a scary one. The more you know about the home buying process, the more confident you'll feel about making these important decisions that will shape your future. When you're in the market for a home loan, you know you can trust your credit union to provide a great rate, great service, and all with fewer and lower fees. And, we've got you covered with a wide variety of lending options. Use our financial calculators for calculating a mortgage or refinance.