The latest numbers from mortgage analysts Ellie Mae show that the average FICO score of approved conventional mortgages is 732. If a borrower has lower credit scores (650 and under), then that
The True Cost Of Not Owning A Home
There are a lot of reasons why owning is better than renting, here are a few reasons comparing the cost of not owning a home:
1- The Price is so Close
Renters are facing increases everyday. With these increases, many rentals are the same cost per month as a mortgage. Zillow recently stated:
“Leaving aside, for the moment, the difficulties of saving for a down payment, let’s focus on the monthly expenses of owning a home: it turns out that renters currently paying the median rent in many markets could afford to buy a higher-quality property than the typical (read: median-valued) home without increasing their monthly expenses.”
The benefit? At the end of a mortgage you have an item that will gain equity whereas with a rental, you leave with nothing but an empty pocket.
2- The Continued Financial Benefits
The latest Rent vs. Buy Report from Trulia speaks of the following financial benefits: mortgage rates are fixed while rent goes up and you gain equity from a home that you can use later similar to a forced savings account. Did you know that studies show homeowner’s net worth is 45 times greater than that of a renter?
3- Repair Cost in Your Hands
A big argument used against buying is that now you have to pay for repairs too. While this is true, you are already paying for your rental repairs, it is in the monthly payment already! Say you go 20 years with no repairs needed, that is money waster! Versus you paying for repairs as they come in your home, repairs you can choose how, and who, to handle them.
Julie Baldino is a seasoned veteran of the Pacific Northwest real estate industry, and has consistently been in the top 10% in sales for over a decade in 2 states. In order to accommodate a rapidly ex....