Renting vs Owning – Which is Right for You?

If you’re thinking about moving this year, you may wonder if renting or owning is the best choice? While there isn’t a one-size-fits-all approach to the matter, there are certain questions you should ask yourself to decide.

Do you Have Long-Term Plans?

When you buy a home, you can’t move as easily as you can when you rent. If you are ready to settle down in an area and commit, there’s no question that buying is better. But, if you aren’t sure where you want to settle down yet or you enjoy moving every year, renting may be the better choice until you are ready to set up roots.

Do you Have Money for a Down Payment?

Most loan programs require at least a small down payment. When you put money down on a home, you build equity in the home right away and you make your loan more affordable. Lenders require some ‘skin in the game’ to ensure you’ll make your payments on time and not risk losing the home.

Can you Take Care of a Home?

When you rent, the landlord oversees all renovations and repairs. When you own a home, the responsibility falls on you. If you’re able to handle the financial and physical responsibilities of owning a home, it is much better than renting. On average, it costs 1% of a home’s value to keep up with maintenance and repairs.

Can you Qualify for a Mortgage?

Unless you have the cash to buy a house (most people don’t), you’ll need to qualify for mortgage financing.

The good news is you don’t need to be rich or have perfect credit, but you should meet some or all of the following:

• Have at least a 620-credit score
• Have 3% – 5% of the sales price for a down payment
• Have a steady job and steady employment
• Don’t have any recent bankruptcies or foreclosures
• Don’t have excessive credit card debt outstanding

Do you Want the Freedom to do What you want with your Home?

When you rent, you don’t have the freedom to do what you want with it. You must get your landlord’s permission to make any changes, or even to have pets. When you own a home, you make the decisions and can do what you want with the property within the city or homeowner’s association’s guidelines.

Final Thoughts – Should you Rent or Buy?

Renting a home doesn’t build equity or give you a return on your investment. Buying is the best way to go when you are ready.

If you have the money saved, have a stable job, and are already to settle down, then buying a home can be the best way to invest your money and give you and your family a great place to live. Knowing where to buy and what to buy to stick within your budget but get a great return on your investment is key. If you’d like help buying your dream home in 2022 – contact me today!

When is the Best Time to Sell my Home?

You want top dollar for your house, and you want it to sell fast too. It’s a tall order to fill, but when you know the best time to sell your house, it can happen. While the right time to sell your house is when the house is in great condition, its value is up, and the market is hot, there are certain times of year that you should and shouldn’t sell your home.

What is the Best Month to Sell my Home?

There isn’t one specific month you should sell your home, but focusing your selling efforts in the spring and early summer months usually has the best results. Most owners get the most for their homes in June and July, but most of the spring and summer months are great times to sell.

What Time of Year is the Worst to Sell my Home?

There isn’t a certain month that is the worst time to sell your home since you could sell it at any time of year, however, winter months tend to be slower no matter which part of the country you live in.

There aren’t as many people looking to move in the winter months which may bring values down. When there are more sellers on the market, values increase because buyers are willing to pay more when there is competition for the house they want.

What Day of the Week are Most Houses Listed?

The most popular day to list a house is Thursday. It sounds like an odd choice, but here’s why.

Most buyers plan the houses they’ll see over the weekend on Thursday or Friday. Fresh listings will catch their eye faster, and they’ll be more likely to want to see it right away to get ahead of the competition. If you list your house near the end of the week, you’ll have a better chance of it being viewed and even possibly have offers on it faster.

What’s your Equity Situation?

Of course, your equity position plays an important role in when the best time to sell your house is. If values are lower than what you owe on the house, no time is good for you to sell because you’d walk away with a loss.

If you have the opposite situation and values are high and you have a decent equity position that allows you to cover the seller’s closing costs and still walk away with cash in your pocket, it’s a good time to sell your home.

Final Thoughts

Knowing when to sell your home is important. Timing it when values are the highest and demand is high too will help you sell your home the fastest. If you’re wondering when the best time to sell your home is, contact me today and we’ll discuss your situation to see when you should sell your home.

I look forward to working with you and helping you get top dollar for your home!

If you’re in the market for a house, you might think about the features the house has or the price, but how often do you think about the mortgage rate?

Many buyers I work with don’t realize the importance of the mortgage rate, so I’m here to clear the air so you make an informed decision.

What is a Mortgage Rate?

The mortgage rate is the fee the lender charges you to borrow money. You borrow principal, or the amount of the loan and the interest is the fee they charge you. Your monthly mortgage payment includes both the principal (loan amount) and interest (the bank’s fee).

How Much of a Difference Does the Mortgage Rate Make?

You might not think the mortgage rate makes that much of a difference. After all, if it’s just 1%, how much more could you pay?

The difference is tremendous, especially if you’re talking about a 30-year loan. When you borrow funds for 30 years, you keep the bank’s money for that time. This means they charge you interest over 30 years versus 10 or 15 years on a shorter term loan.

Here’s an example:

You borrow $230,000 at 4% for 30 years. Your principal and interest payment are $1,098 and over the life of the loan, you’d pay $165,299 in interest. That’s in addition to the $230,000 that you pay back (the money you borrowed).

Now, if you borrowed $230,000 at 5% for 30 years, your principal and interest payment would be $1,234 per month and over the life of the loan, you’d pay $214,488 in interest.

That’s a difference of $49,189! I’m sure there’s a lot you’d rather do with that amount of money instead of paying the bank, right?

How to Lower your Interest Rate

So how do you make sure you get the lowest interest rate? While every lender is different, here are some ways to ensure you get the best rate possible.

• Pay your bills on time
• Don’t overextend your credit lines, keep your credit balances at 30% or less of the total credit limit
• Dispute any incorrect information on your credit report
• Keep a stable job and income
• Make sure your monthly debts including the new mortgage are 43% or less of your gross monthly income
• Don’t have any collections on your credit report
• Make a large down payment

Lenders like it when borrowers are a low risk of default. You can be this by providing great credit, a large down payment, and solid employment and income histories.

Final Thoughts

Your interest rate makes a big difference in your mortgage payment and even what house you can afford. Sometimes even an interest rate that ½ point higher can make you ineligible for a mortgage loan.

Don’t take a chance. Shop around and get the best interest rates possible all while ensuring that you present lenders with the least amount of risk as possible.

If you have questions or would like to be connected witha local, reputable lender, please contact me today.