Should I buy a home vs renting with inflation
Buying A Home Vs Renting A Home In An Inflationary Market
In an inflationary market, buying a home is usually better than renting. Here's why:
Inflation is not transitory, it is going up, but for homeowners, their mortgage principal and interest payments will never change. Renters on the other hand will see rent increase with inflation. It doesn't matter if you are renting a house or apartment, your rent will go up.
Mortgage Expense And Your Budget
Most renters understand this concept; however, they believe mortgages are more expensive and they can't afford one.
In general, this isn't true. However, you do need to compare your rent payment to your potential future mortgage payment. The monthly payment on a mortgage is usually lower than the monthly rent payment for the same house or apartment, but not always. Try our
mortgage calculator to see if your payments will be higher or lower, and compare your potential mortgage payments to your rent.
The Impact Of Interest Rates
Another common misconception, we hear is, "interest rates have gone up. I want to wait until they drop to lock in my rate." In reality, you can buy now, and when the rates drop, you can refinance your home at a lower rate.
For example, hypothetically, let's say you buy today at a higher rate. Over the next three years, you build equity, save money compared to the rent you would have paid, and own your home. Then rates goes down significantly. You are missing out on a lower payment. That is, until you refinance.
A lot of people don't realize that you don't have to stay locked into the higher rate. If rates go lower, you can simply get a new loan.
Personalized Analysis And Results
Everyone's situation is different. And we are the first to admit, that renting might be the better option for you. But, wouldn't you like to know? You can run the calculations yourself, or you can let us do it for you.
There is no obligation to start the lending processes. Just an obligation to yourself to figure out what's best for you.
Get a rent vs buy analysis today! Complete the form below and one of our advisors will reach out to you.
Or, give us a call at (727) 784-5555 and we will be happy to answer all of your questions.
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Rent Vs Buy Analysis
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