Do you ever go to bed at night wondering if you’ll ever be able to afford a house? Did you know your house payment could be less than what you're paying for rent each month? With interest rates being as low as they are, now is the time to work with your real estate agent to find a house to buy.
If you’re financially stable, have a good credit score, a secure job, little or no debt, and are ready to settle into a house of your own, now is the time to buy a house. With interest rate at an all time low, you might find yourself with a house payment lower than the rent you’re paying.
By purchasing a house, you’ll amass a larger net worth over time. That can’t be said about renting. When you own a house you not only have pride in ownership, you can take advantage of tax deductions and build equity too. In addition, when you have a fixed-rate mortgage, you don’t have to worry about your monthly payments ever increasing. As a renter, your landlord can increase your rent at the end of the lease, possibly making it higher than you can afford.
Rent = $2,100/month
Mortgage payment = $1,880/month + earn equity
Imagine paying the same or lower monthly payments and owning your own home. Low interest rates are making that a reality for many people. No more landlords, more space, no footsteps heard overhead in the middle of the night, or loud music heard through thin walls. You can paint the walls any color you desire, create a garden in your backyard, own pets without paying pet rent, and so much more. We’ve lived in our house for over 2 decades and have painted nearly every room, changed the carpeting, remodeled bathrooms, landscaped… the list goes on and on. We are proud homeowners and couldn’t be happier.
To help pay the monthly mortgage payment, you could rent out a room or the basement. If you live in a college town, this is fairly easy to do. Renting to young relatives, who are on their own for the first time, is also a good option. Imagine only having to pay $1,700 each month vs. $2,100, thanks to income from a tenant.
Mortgage payment - renter payment = Less you have to pay out of pocket
$2,100 - $400 = $1,700 (amount you pay)
I rented a room in an old Victorian house when I was in college. It was hundreds of dollars less than what I would have paid for an apartment and it was within walking distance to school. There were designated kitchen hours, but I could use a hot plate or microwave in my room which I commonly did. I shared a bathroom and a refrigerator with another tenant whom I rarely saw. I was appreciative of the affordable rent and it helped my single, elderly landlord pay her mortgage.
If you’re ready to buy a house, talk to your real estate agent. They can set notifications within their MLS to be alerted when a property, matching your criteria, hits the market. This could put you in a position to be the first to see a property and make an offer. This is a huge advantage especially when there is a lot of buyer competition.
If you need help finding a real estate agent, please let us know. We have connections with agents across the U.S. and in Canada.
Questions about buying a home? Download our home buyer guide:
