Are some of your buyers torn between renewing their lease at a higher rent or buying a home with prices and mortgage rates that have also gone up? What if the current prices and rates are as good as it gets?

 

Even with today’s higher rates and home prices, there still are benefits of buying over renting. This is especially true now more than ever with rental rates in our area at all-time highs.

 

Here are a couple reminders for your buyers of the advantages of buying over renting:

 

·       You’ll have no restrictions from a landlord. Your house is your own, you have the flexibility to live with limited constraints.

                                                               

                          

·       You’ll have more stable housing costs. Rents typically increase every year, but with a fixed rate mortgage your monthly principal and interest payments will remain the same.

                                                                

 

·       You’ll have the stability of having a place to come back to every day. The comfort of knowing you do not have to move because your landlord has raised the rent beyond what you can afford, or the landlord has sold the home and you can no longer reside there.

                                                                   

·       You’ll be building equity in your home; you are investing in yourselves and not in the landlord. You’ll have ownership in something that historically gains value over time. If you were just paying rent, you would have nothing to show for it when you move out. As an owner, you could have the opportunity to make money when you sell.

                                                             

 

 

 

 

 

·       You can get into a home with as little as 3% down on a conventional loan, 3.5% on an FHA loan, and zero down on a VA or USDA loan. Many people don’t realize they can buy with not much more than they would have to pay to rent a place that requires the first month’s rent, last month’s rent, and security deposit.

·       Many people do not think they can afford a home in this market. If you are unsure, there is a great mortgage calculator tool available on Blue Skye Lending’s website (https://housingbrief.com/mortgage-calculator/5afdcb95becf1e199c7cdfe1#) that allows you to see what the cost of your home will be. Below is an example of the cost of an FHA home loan on a $425,000 home in the Sarasota/Bradenton/Lakewood Ranch area.

 

As you can see from above, this may be less than or close to the rent on a similar home with all the advantages of home ownership. The above information was true at the time of publication. Please be aware that rates change constantly.

If you are interested to see if you can qualify for a home purchase, please reach out to me:

941-246-6028/ NMLS#1901149/ Mhill@blueskyeloans.com