Tag: buying

Whether You Rent or Buy, Either Way You’re Paying a Mortgage

Whether You Rent or Buy, Either Way You're Paying a Mortgage! | Keeping Current Matters

There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with someone rent-free, you are paying a mortgage – either yours or your landlord’s.

As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich”:

“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”

Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explains another benefit of securing a mortgage as opposed to paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.

Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 4.22% last week.

We’ve posted a lot about purchasing a home, important things that home buyers should know, including Steps in the Home Buying Process and Dos and Dont’s When Applying for a Mortgage.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.

Contact us to learn more about your local market! (708) 529-5839 cell.

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How Low Supply + High Demand Impacts the Real Estate Market

How Low Supply & High Demand Impacts the Real Estate Market [INFOGRAPHIC] | Keeping Current Matters

Some Highlights:

  • The concept of Supply & Demand is a simple one. The best time to sell something is when the supply of that item is low & the demand for that item is high!
  • Anything under a 6-month supply is a Seller’s Market!
  • There has not been a 6-months inventory supply since August 2012!
  • Buyer Demand continues to outpace Seller Supply!

Real Estate Sales at Highest Pace in 10 Years

Sales at Highest Pace in 10 Years! [INFOGRAPHIC] | Keeping Current Matters

Highlights:

  • 45 million existing homes were sold in 2016! This is the highest mark set since 2006.
  • Inventory of existing homes for sale dropped to a 3.6-month supply, the lowest level since NAR began tracking in 1999.
  • The median price of homes sold in December was $232,200. This is the 58th consecutive month of year-over-year price gains.

Renting vs. Buying: What Does it Really Cost?

Renting vs. Buying: What Does it Really Cost? [INFOGRAPHIC] | Keeping Current Matterss

Some Highlights:

  • The percentage of income needed to afford a median priced home is almost half the percentage of income needed to afford median rent.
  • Buying costs are significantly less than renting costs.
  • The percentage of income needed to afford a median priced home is less than the historic norm.