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The Difference Between Renting and Buying a Home

buying a homeWhen deciding between renting or buying a home, think about these three factors:

1. Buying a home means avoiding rising rents.

When you rent: Your monthly payment generally goes up each time you sign or renew a lease. 

When you buy: With your fixed-rate mortgage, your monthly payment is locked in for the length of your home loan.

 

2. Homeowners own a tangible and valuable asset.

When you rent: You won't get any return on your investment as you pay your rent monthly.

When you buy: As home prices rise, and as you pay down your home loan, you build equity.

"...the average U.S. homeowner now has about $290,000 in equity." -CoreLogic

 

3. Owning your home grows your wealth over time.

When you rent: When the cost of renting goes up, it's more difficult to save money for a down payment to buy a new home.

When you buy: As you build equity through the years, you give your net worth a big boost.

"A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter." -Lawrence Yun, Chief Economist, NAR

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For more information about community happenings and real estate news visit Wanda's Blog at www.wandamooney.com/blog. Check out a copy of her First Time Buyers Guide for more information.

Photo by Oleksandr P

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