With seasons changing maybe you are considering a change?
Should you continue to rent a home in 2017 or is it time to buy? There are a variety of factors that go into the decision, but here's a big one: Historically low mortgage rates.
Should you continue to rent a home in 2017 or is it time to buy? There are a variety of factors that go into the decision, but here's a big one: Historically low mortgage rates.
Generally, the more time you plan to live in a home, the more sense it makes to buy. If you have just moved to a community, renting — at least initially — may be a better option as you get to know different neighborhoods. Another factor: Your job. How stable is your employment? Buying could make more sense right now if you aren’t thinking about switching jobs, your employer is not reducing its workforce or if your company isn’t planning to move you to a different city or state.
Another way to evaluate the rent-versus-buy decision: The U.S. Breakeven Horizon, compiled by real estate website Zillow.com. This analysis is designed to provide an estimated number of years one needs to live in a home for buying to make more sense than renting. Factors such as expected growth in rents and home values, price-to-rent ratios and mortgage interest rates are included in the analysis. Nationally, that figure is 1 year and 11 months. For a look at the Breakeven Horizon in the area you are thinking of buying, go to this link.
While a variety of factors may sway the buy-versus-rent decision, there’s one that’s tipping the scales toward buying a home in a big way: Historically low mortgage rates. Take a look at average mortgage rates since 1971 and you’ll see that today’s rates are extremely favorable. Low mortgage rates help families stretch their home buying dollars. Questions about whether buying a home is the right choice for you and your family? We’re here to help.
