Are you a Renter? Now may be the perfect time for you to consider buying a home.
Rental prices have reached an all-time high according to a recent study from Realtor.com. The report found that the average rent has risen by 8.1% since 2020. In May and June, rents increased by 3.0% and 3.2% respectively, where past rent typically fluctuated less then 1% month-to-month.
Monthly payments are likely top of mind when choosing which option is best for you: to rent or buy. According to the National Association of Realtors (NAR), the latest data shows the average monthly mortgage payment is $1,204. By contrast, Realtor.com shows the average national rent is $1,575. That is a difference of $371 per month, which equals a savings of $4,452 per year.
Another consideration is the difference between variable vs. fixed costs. Rental costs have continued to rise each year since 1988, making future payments year over year unpredictable.
In contract, homeowners can lock-in their monthly payment when they lock-in their mortgage rate. Fixed mortgages help stabilize payments for up to 30 years, and this can be a big benefit.
Other benefits to jumping into homeownership include historically low interest rates, tax deductions on interest and the unprecedented appreciation millions are seeing on investment.
Plus you can paint and change the carpet whenever you want.
So, if you’re looking to save more money, stabilize monthly payments and watch your investment appreciate over time, homeownership may be just right for you.
Give us a call. We’d love to chat with you about your options so you can make the best decision.