Should I Buy or Rent?

Thinking about homeownership? Worried you’re not ready?

Answer these three questions to help you decide your next housing move.

Can you afford the upfront and ongoing costs?

Is there room in your budget for:

• the down payment
• closing costs
• home maintenance expenses
• homeowners’ insurance
• property taxes

If you need extra help making a down payment on a home, you may want to consider exploring down payment assistance programs that are available in your area.

How long will you live in the home?

Plan for at least five years (or more) to make those upfront expenses worth it.

Are you emotionally ready?

Homeownership is a source of pride and stability for owners, as well as a huge responsibility and sign of settling down.

Consider some of the basic pros and cons of renting versus buying to gauge where you’re at:

Pros & Cons of Renting

• PRO: Flexibility. There’s less hassle if you want to move.
• PRO: Fewer costs. Down payment, closing costs, taxes, repairs and maintenance all add up.
• PRO: Less responsibility. If the heating breaks or faucet leaks, it’s someone else’s problem.
  
  
• CON: No control. You probably can’t paint walls or make changes to the space.
• CON: No equity. Your rent doesn’t go toward an investment.
• CON: Rent increases. Your rent will continue to rise year after year.

Pros & Cons of Buying

• PRO: Tax benefits. You may be able to deduct your mortgage interest from your taxes.
• PRO: Equity. The money you pay toward your mortgage is ideally recoupable.
• PRO: Ownership. You get the pride, stability and freedom of owning your property.
  
  
• CON: Extra costs. Making repairs, paying property taxes and more are part of home ownership.
• CON: Less flexible. There are more steps to undertake when you’re ready to move.
• CON: Your time. Maintaining a home will take up a lot of your free time.

Ready to buy? Get in touch with our local mortgage lending experts or get preapproved. 

Still researching? Explore our Mortgage Learning Center.