Renting is just like paying someone else’s mortgage. In Arizona, rental prices are high, and according to RENTCafé , “Phoenix’s average rent increased the most among the largest renter hubs, by 8.3 percent” While home prices have also increased you would be building equity instead of throwing money away. Not to mention, with record low interest rates you can get more house for your money! Paying your mortgage is similar to paying rent, but instead the money goes to paying off your property, NOT someone else’s.
Buying a home is a bigger commitment than renting. If you plan on staying in the same area for a long period of time and have a steady income, consider buying. Renting is great for short term solutions, but not forever. If you have saved up enough money for a down payment, are not planning on leaving the area anytime soon, and have a secure job, finding a home to buy might be the right step for you! However CBS wants to warn you, “When housing costs exceed 35 percent of gross income, you’ll have to make unsustainable budget cuts to make house payments.” Be reasonable when deciding what your price point will be. Give us a call to be connected with amazing realtors and experienced lenders who can guide you every step of the way.
Check out this Info-graphic put together by Mortgage Calculator about the differences between renting and buying.