Caught in the Rental Trap?

Posted by Cindy Allen - Buyer's Agent on Tuesday, August 1st, 2017 at 4:58pm

Lock In Your Housing Expense

Lock in Your Housing Costs Now

Is now the time to lock in your housing costs?  I got a call this week from some renters who have put off buying a home in the Keller School District because housing prices have risen.  They often say they waited because the housing market was going up so fast.  But now these folks are starting to realize they can't save for a down payment faster than home prices are going up, and their rent is increasing too.  There are lots of advantages to homeownership, and as these renters are realizing,  one of the top advantages is being able to protect themselves from rising rents by locking in housing cost for the life of a mortgage.

It’s Cheaper to Buy Than Rent

The latest Rent vs. Buy Report from Trulia shows that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers show that the range is an average of 3.5% less expensive in San Jose (CA), all the way up to 50.1% less expensive in Baton Rouge (LA), and 33.1% nationwide!

Additionally, the Joint Center for Housing Studies at Harvard University’s 2017 State of the Nation’s Housing Report stated: 

“Despite a slight improvement from 2014, fully one-third of US households paid more than 30 percent of their incomes for housing in 2015. Renters continue to be more likely to face cost burdens…the number of cost-burdened renters (21 million) considerably outstrips the number of cost-burdened owners (18 million) even though nearly two-thirds of US households own their homes.”

Do You Know Your Options?

A national survey of renters found 80% of millennial renters plan to eventually buy a house, but 53% say the down payment is their obstacle.   Unfortunately,  many first-time homebuyers think they need a large down payment and so may be missing out on their dream homes. According to a recent survey conducted by Genworth Financial Inc., mortgage professionals say that 28% of first-time buyers still believe a 20% down payment is necessary to buy in today’s market!  If that's you, or someone you know, we need to talk.  There are plenty of ways to own a home with just 3% or less for a down payment. 

Bottom Line

Don’t get caught in the rent trap. If you're ready let’s get together to determine if you can qualify for a mortgage now!

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