Renting vs. Buying a Home: Your Questions Answered

To rent or buy … As mortgage brokers, we get that question often! The answer is different for everyone. Building equity by purchasing a home often makes financial sense, but sometimes renting wins.

Many of our clients are surprised when we suggest renting. It has received such a bad rap over the years. We’re mortgage brokers, so our business revolves around real estate purchases. However, our clients are our first priority, so when renting is the best option, we tell them.

If you’re on the fence between renting and buying a home, this post is for you! Let’s go over the specific reasons that might lead you in either direction.

Are You Ready To Buy a Home?

With all of the mortgage options available, it almost always makes sense to buy. Here are five indications that buying is a smart move for you:

• You have little to no consumer debt.
• Your emergency cash fund is fully stocked.
• You plan to stay in the same home for at least three years.
• You know that your potential housing costs (mortgage, property taxes, home insurance, etc.) will add up to less than 25% of your take-home pay.

Three Reasons To Rent

There are plenty of good reasons to rent a home, even if the masses tell you that you’re “throwing away money.” Here are three reasons why we almost universally recommend renting:

• If you have a lot of debt to your name, there’s no shame in renting a cheap apartment until you get it under control.
• If you relocate frequently, renting is easier and might even save you a few dollars in the long run.
• If you’re not sure where you want to live, what you want in a house or what your life will look like in the next couple of years, rent until you figure it out.

Contact Us Today!

Let our team of experts help you make your next mortgage move! Contact MortgageDepot today for answers to your renting vs. buying questions.

Connect with one of our loan consultants today to learn more!