Home Buying 101 Seminar
Would you rather pay your mortgage rather than your landlords mortgage? Renting vs buying is a long argued debate. The reality is that both have their pros and cons. It really comes down to what you want as an individual or family. Do you like the idea of having a place to call your own? How much can you afford for a down payment and monthly mortgage? Are you someone who likes to move around a lot or do you plan on staying in one place for awhile? If you answered yes to the first question then buying a house may be the right choice for you. Owning your own home gives you a sense of security and pride that comes with being a homeowner. On the other hand, if you plan on moving around a lot or answered no to the first question then renting might be the best option for you. Renting is more flexible than owning and if you find yourself needing to move, it’s a lot easier to do so when you don’t have a house to sell.
The hard truth right now is that we are facing an uncertain time with inflation and rising rates. Rents have been increasing nationwide at an alarming rate with no end in sight. As a result you should be considering buying more than renting now. When you buy a house, your payment is fixed. In other words, your mortgage payment will not increase even if inflation goes up or market rates increase. This gives you the security of knowing what your monthly expenses will be for the life of the loan, usually 30 years. On the other hand, when you rent, there is nothing stopping your landlord from increasing the rent each year, sometimes by a significant amount. This can make it difficult to budget and plan for the future when you don’t know how much your monthly expenses will be.
Purchasing a home with a 30 year fixed mortgage will lock your home payment and provide stability to your monthly budget. In the short term that might seem scary, but what do you think your monthly rent will be in 10,20, or 30 years? Also consider the fact that your monthly mortgage goes towards principal, it's essentially like putting money in your 401K every month.
Come to our First Time Home Buyer 101 seminar at BHGRE by the Sea in Carmel by the Sea and learn how you can put your money into owning your own home. If you complete the seminar, we will pay for your home inspection and appraisal at the time of your purchase- a $1700 value, absolutely free! We'll see you there at the Better Homes and Gardens Real Estate by the Sea office on October 20th!