Renting vs. Buying
Trying to decide whether to rent or buy? Here are some things to consider.
Homeowners can secure a fixed-rate loan and lock in their monthly payments and make investment plans knowing these expenses won't change substantially. However, rent can go up each year without the renter's input. Renters are at the mercy of their landlord, while homeowners are in control of their property when it comes to pet ownership, decorating, expansions, renovations and other home improvements that are permanent.
If you decide buying is for you, your house hunting begins at home ... with planning. Before you grab the road maps and hit the streets, you need to know how much house you can afford to buy.
Determining that amount depends upon two things: how much you can afford for the monthly house payment, and how much you can invest in the down payment. A current rule of thumb is that the monthly payment should not be more than 25 percent to 33 percent of gross monthly income.
A RE/MAX Allegiance sales associate or our lending affiliate, can be very helpful to you in determining just how much house you can afford.