A steady job is a great indicator that it might be time to get a mortgage.
Phoenix, AZ (PRWEB) May 08, 2014
Debt Consolidation USA shared in an article published last May 2, 2014 the factors to consider when trying to figure out between renting or buying a house. The article titled “How to Know If You Should Buy A Home Or Continue Renting” highlights the advantages and disadvantages between the two. It aims to help consumers decide which between the two option is a better choice.
The article lists down factors to look into when a consumer reaches a fork on the road where one leads them to buy a house and the other makes them consider about renting a place.
Below are the considerations to know that buying a house is better than renting.
Cost between renting and buying - The article points out that the consumer must look into the cost difference of buying and renting out a place. This should be based on the monthly mortgage payments and not the monthly rent vs the price of the house. If taking out a mortgage is the same as or less than renting amount, it is better to purchase a house.
Down payment - If the consumer was able to save up for at least 20% down payment on the property, it is a good indicator that buying a house is better. The bigger the down payment, the lower the monthly payment will be.
Credit score - The article shares the importance of maintaining a good credit score. Just as with most credit facilities, taking out a mortgage carries an interest rate which is mostly dependent on the credit score of the applicant.
Employment - A steady job is a great indicator that it might be time to get a mortgage rather than renting out. The article points out that having a steady stream of income can provide for the monthly bills including the mortgage payment.
Below are the considerations to know that renting a place is better than taking out a mortgage.
Cost between buying and renting - The article shares that if the market for housing is high, it might be a better option to rent out a place in the meantime.
Debt to income ratio - There are certain points in a person’s life that expenses are eating a lot out of the income. It could be when a new item was bought or self improvement classes were charged on credit. Whatever it is, the article stresses the fact that it is better to rent when debt is taking a big chunk from the income.
Credit score - Interest rates are dependent on credit score so if it is reflecting a bad score, it might be a good time to rent a place first while fixing the credit rating. It is a good opportunity to fix it so interest rate in the future would not be as high as it is now.
The article also shares some of the things to look out for when purchasing a home. To read the rest of the article, click on this link: http://www.debtconsolidationusa.com.