RENT VS BUY? Which is best for you?

Rental rates in Denver have been increasing dramatically of late. At the same time Interest rates are still at near-historic lows so now may be the perfect time to consider a home purchase.

Here are some things to consider when weighing your RENT VS. BUY options: 
  • How long do I plan on being in the home?
    • The longer you stay in your home, the more opportunity there is to see an increase in the home’s value. If you are on a long term plan, buying will look much more attractive than renting.
  • What is the opportunity cost by not taking advantage of rising home prices?
    • Time is of the essence! With recent market appreciation and in uptick in interest rates, the same down payment and monthly payment amount you budgeted for may no longer buy you the same home you qualified for last year. For example, a payment for a $250,000 purchase last year will now only purchase an estimated home value at $208,000.
  • What kind of mortgage do you qualify for?
    • If you have less than perfect credit or have little or no down payment, the mortgage interest rates you’ve seen quoted on the internet or TV may be slightly higher. There are many things to consider and many loan programs that may be a good fit.
Never assume you can’t qualify for a home loan. Talk to a licensed mortgage professional and weigh your options!  

- By Bill Goldberg, May 15, 2018