Homes, To Buy or Not to BuyWhether you are just moving out on your own for the first time, or you've moved ten times before, there is always a big choice to make. Do you rent or buy your home? There are valid arguments on both sides, and in different scenarios either one could be the right choice. When you start looking into your next, and possibly final living space, there are a number of things you should consider. When deciding whether to rent or to buy you might first look at how long you plan to stay before moving again. If you thrive on frequent change and the freedom of spontaneity, buying might not be the best choice. Renting a house is often considerably easier than selling one. Another more obvious consideration is your financial picture. Do you have enough for a down payment of 10 percent, or is one month's rent more in your budget? Credit worthiness is a significant factor. In order to secure a loan you will need to demonstrate capacity to repay, strong credit history and collateral to secure the loan. Although your credit union can help you explore some viable lending options if you have a few credit blemishes, very poor credit may eliminate all funding options. You may choose to rent while you rebuild your credit score and save some money. Some advantages of renting 1. You have to pay a deposit to move in, but can get it back at the end of your lease, assuming there is no damage to the property. 2. Repairs to the property are generally covered by the owner. 3. You do not have to pay property taxes or insurance (although you should consider renters insurance) on the rental property. 4. You do not have to worry about marketing it yourself if you chose to move. These can be powerful advantages for people without strong community ties or in temporary circumstances or with financial concerns. Some disadvantages of renting 1. You have no equity in your payments, and when you move, the money you paid to rent is gone. 2. You have to abide by the rules of the property owner, and many times the rent does not reflect on your credit unless you have a negative experience, such as an eviction. 3. You are limited in terms of creating a space "uniquely yours" (i.e. limited possibilities for remodeling). A few thoughts on buying Buying a home requires a good deal of thought and investment, but it can be an excellent option for those with the credit, money, and desire to remain in one place for an extended period. The upside of buying a house is that it is yours, and you can do what you wish with it (within reason of course, or you will have neighbors/associations to answer to!). Many homeowners appreciate opportunities to personalize their homes and painting, remodeling, and adding on become exciting options. Making house payments and improvements on your home also helps build equity, making the house worth more with time. Owning a home also offers advantages at tax time and can be an important resource if you ever need to borrow a large sum of money. There are some downsides to buying. If it breaks, you get to fix it. There is no maintenance man or deductions on rent for self-repair. You also have to pay all taxes and insurance on your home, causing more of an expense than renting somewhere comparable. Issues regarding value are also in play. Purchasing a home should be an investment. If your home loses value because of changes in the neighborhood or the market you may end up losing money. What's most important for making the best decision for your situation is research and a careful review of your short and long term financial goals. The choice is yours. Nicole Soltau is the President and Founder of http://CreditUnionRate.com - The Leading Credit Union Directory Search, Find, Join.
MORE RESOURCES updated Wed. April / 24 / 2024 Should You Refinance Halfway Through Your Mortgage? Bankrate.com 10-year refinance rates: What to know about the current market CNN Underscored Only Half Of Black Seniors Approved For Home Repair Or Refinance Loans To Age In Place Block Club Chicago 15-Year Mortgage Refinance Rates: Compare Current Rates Business Insider How to Refinance Your Mortgage NerdWallet Will Interest Rates Go Down in May 2024? | Mortgage Rates Forecast The Mortgage Reports Average Mortgage Interest Rates: Mortgage Rates by Credit Score, Year, and Loan Type Business Insider 30-Year Mortgage Refinance Rates Business Insider Mortgage Interest Rates Today, April 22, 2024 | The Still-Hot Economy is Keeping Rates High Business Insider Mortgage Interest Rates Today, April 21, 2024 | Rates Remain Near 7% Business Insider Mortgage Interest Rates Today, April 19, 2024 | High Rates Make for a Challenging Homebuying Season Business Insider The best mortgage lenders for refinancing in April 2024 CNN Underscored How To Choose The Right Kind Of Refinance For You Bankrate.com Mortgage Interest Rates Today, April 20, 2024 | Rates Remain Elevated, but They Could Fall Later This Year Business Insider Should You Refinance Your Mortgage In 2024? Bankrate.com How To Refinance A Rental House Bankrate.com Best Mortgage Refinance Lenders In 2024 Bankrate.com Current mortgage refinance rates CNN Underscored When to Consider Refinancing Your Mortgage Business Insider Best Mortgage Refinance Lenders of April 2024 Business Insider Mortgage Rates Chart | Historical and Current Rate Trends The Mortgage Reports How To Get A Home Equity Loan With Bad Credit Bankrate.com Refinance Requirements: What You Need to Refinance Your Home in 2024 The Mortgage Reports How Soon Can You Refinance a Mortgage? NerdWallet Mortgage Rate Forecast February 2024 Bankrate.com Refinancing a Home Equity Loan (2024 Guide) MarketWatch Conventional Refinance Rates and Guidelines for 2024 The Mortgage Reports How To Refinance An Underwater Mortgage Bankrate.com 30-year refinance rates: What to know CNN Underscored Mortgage Rate History: 1970s to 2023 Bankrate.com Current 15-year refinance rates — and lenders that offer them CNN Underscored When should I refinance my mortgage? To determine if a refinance is the right move for you, you’ll need to know the ... The Wall Street Journal Best Refinance Lenders of April 2024: Refinance Your Mortgage The Motley Fool Pros and Cons of a Cash-Out Refinance Bankrate.com Should I Refinance My Mortgage Now? When to Refinance As Rates Drop Business Insider What Credit Score Do I Need To Refinance? Bankrate.com Office of Research blog: A look at cash-out refinance mortgages and their borrowers between 2013 to 2023 Consumer Financial Protection Bureau With property values strong in 2023, many homeowners tapped home equity lines of credit, pushing total HELOC ... Miami Herald The Sales Pitch for an 8% Mortgage: Buy Now, Refinance Later—for Free The Wall Street Journal Will Mortgage Rates Go Down in 2024? What Homebuyers Should Expect Business Insider Mobile Home Refinancing | Loans & Rates 2023 The Mortgage Reports Current mortgage interest rates: Mortgage rates today CNN Underscored CFPB Releases Study of Refinance Mortgage Loans Between 2013 and 2023 Consumer Finance Monitor HomeReady Mortgage Fannie Mae
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