Rent just keeps going up. At what point, is it a better financial decision to buy? Take a look at this Rent versus Buy Calculator found on the Business Section of the NewYork Times. This will give you an idea of the costs of renting compared to what you might be paying to buy a home.
Before buying a home, people consider many things. Most importantly are the finances. Will I be able to afford it? What if I lose my job? Both important questions.
How can I find out what I can afford? While this Rent versus Buy calculator, gives you an idea of what you might be able to afford in a mortgage, it is important to talk to a lender, who compares your income to debt ratio to know what you can get qualified for in a home loan. Even if you are not quite there, lenders can help you see where you are at and where you need to be.
Many buyers worry, What if I lose my job? However, realistically this will be a concern even if you rent. You would have to do the same thing if you rent or own. You use savings, borrow from family, you get unemployment or work hard to find another job. Landlords, like bankers, won't let you go months without paying the rent. Most lenders look at your past two years of employment.
With rents continuing to climb, this Rent versus Buy Calculator can help you determine the right time to buy and the cost of waiting or missing out.
Written by Virginia Hall ● Keller Williams Realty ●