Is It Yet Time For You To Buy A Home?

Choosing to rent or buy a home is one of the biggest financial decisions of your life. At the end of the day, you want to go with the option that makes more financial sense for you. Many important considerations need to be made before you can be sure you are making the best decision.

Image Courtesy of Public Domain Pictures

Image Courtesy of Public Domain Pictures

With mortgage rates remaining considerably low following the 2008 financial crisis, a lot of people are considering homeownership. This comes with a lot of benefits, including the fact that you can build equity in your home, something you cannot enjoy when renting. If you haven’t already thought about it, Kimberly Neumann will give you enough reason to:

6 Stellar Reasons to Buy a Home in 2016

Is it really 2016 already?  For those of you who happen to be planning on buying a home in the new year—or even just trying to—there’s a whole lot to celebrate. Why? A variety of financial vectors have dovetailed to make this the perfect storm for home buyers to get out there and make an (winning) offer. Here are six home-buying reasons to be thankful while ringing in the new year… Check out the full post…

home keys

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Despite the heightened appeal of homeownership, it’s still important to note that buying a home, even when affordable, may not necessarily be the smart move for everyone. According to Spencer Rascoff, CEO of Zillow, one important consideration is how long you intend to live in that home. Your decision will also be influenced by where the home is located.

Zillow CEO: When you should buy vs. rent

Buy or rent. It’s an age-old dilemma.

A growing number of Millennials are increasingly focusing on that decision now that rents are going up in many cities. But how do you make the right choice?

Zillow CEO Spencer Rascoff has one tip.

“The best piece of advice for a home buyer, when thinking about whether to buy or rent, is to evaluate how long they’re going to live in the home,” Rascoff told CNN’s Cristina Alesci at the Milken Global Conference in Los Angeles. Click here for the full explanation…

Once you’ve made the decision to buy a home, you’ll probably need to take on a mortgage. You have two options – a 15-year mortgage and a 30-year mortgage. Each has its pros and cons, but most people today are encouraged to take the 15-year mortgage. It comes with a shorter mortgage period, faster equity accumulation and significant savings on interest.

new home checklist

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On the other hand though, a 15-year mortgage loan places a lot more financial pressure on you over the 15 years you’ll be paying the loan off. This is the kind of pressure that most of us simply can’t afford to take up if we intend to enjoy even a moderate amount of financial flexibility. As Colin Robertson argues, there’s a reason why the 30-year mortgage exists. As such, it should be considered if you are to make the best possible decision.

Should You Only Buy a House If You Can Afford a 15-Year Fixed Mortgage Payment?

I’ve already written at length about the pros and cons of a 15-year fixed mortgage, but some financial experts claim you shouldn’t even buy a home if you can’t afford this shorter-term mortgage option.

You know, guys like Dave Ramsey, and perhaps more reasonable folks like that financial planner you visited recently.

The problem is that many, many Americans simply can’t afford the higher payments tied to a 15-year fixed mortgage, for better or worse.

15-Year Mortgage or Bust?

Let’s talk about the rationale behind this theory first to see why it is often suggested. Read full argument here…

At the end of the day, the best decision will be the one that is the most informed. It’s important to educate yourself as much as possible about your options. Additionally, you need to be realistic about your financial capabilities. Fortunately, this information is readily available if you’re willing to take the time and effort to get it. Good Luck!

Featured Image: Image Credit

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