Maybe it’s not quite as trendy as athleisure or Millennial pink, but the question of renting versus buying a home seems to be a common one that many Americans are considering. If you’re wondering whether the time is right to buy a home — or if you’re taking stock of what you might need to do to get things in order so that the timing feels more ideal — here are a few things to think about:
Run The Numbers
Let’s break this down: It’s important to understand exactly what you’re paying for as a renter, and what you might gain or lose if you were to buy a home instead. If you rent, you won’t maintain the costs of owning a home (like costly repairs if and when things break or malfunction). But you also won’t build any equity as a renter. Consider making a pros and cons list that takes everything from landlord-provided maintenance to HOA fees into account, and consult the Rent vs. Buy Calculator to crunch some more specific numbers.
Consider The Benefits
There are definitely some perks of owning a home, including the fact that you’ll build home equity. If you rent, any money that you pay is essentially gone — it’s your landlord’s income as soon as it leaves your bank account. When you own a home, you’ll build equity that you could potentially leverage down the road to cover things like home improvements or paying down non-mortgage debt.
Consider The Costs
While there are benefits to owning a home, there are also costs associated with becoming a homeowner. Some things to think about before buying a home include:
Homeownership makes sense for a lot of people, though everyone’s unique financial situation is different. If you weigh the various pros and cons of homeownership and decide to buy a home, Mr. Cooper is here to help. Get in touch with one of our pros today to begin your homeownership journey!