Rent or Buy a House: Construction Loan vs Mortgage
Owning a house is a dream for many Americans. Are you looking for an affordable house to buy? Maybe you’re thinking about renting it, aren’t you? The housing market is constantly moving up and down. What’s the right choice for you: renting a house or getting a construction loan vs mortgage? Just read below and you’ll see.
Factors to Consider When Buying/Renting a House
There’re a few highly important points to dwell on before making your final decision. Here’re two of them:
Let’s focus on the costs first. Renting a house is generally associated with fixed monthly costs. The rate of your fixed, monthly rent may or may not include electric, gas, and cable or internet, etc.
As for buying a house, you should take several important issues into account. One of them is that the majority of mortgage loans charge a down payment of between 5 – 20% of the price of the given house.
By the way, if you’re considering a construction loan vs mortgage, turn to a reputable business funding provider to get the best deal for you. With a respectable alternative online lender, you can enjoy the lowest possible rates and the best terms in the industry.
Now, let’s focus on the location. Be aware that the South and Midwest are more reasonable price markets as compared to the other ones. As to many West Coast areas, such as Silicon Valley, these are out of reach for the majority of potential homebuyers.
In fact, the most vivid contrast between owning and renting a house is found in California. The factors associated with the high-tech industry and scads of multimillionaires have made this area the 5th largest economy around the globe. It surpasses the UK.
It should also be noted that in many parts of the country, the rent-to-ownership ratio is enough reasonable. The ratio is good especially in smaller cities such as Joliet, Illinois, Warren, and Michigan. If you have a 6-figure income, it won’t be easy for you to live in such places.
Buy or Rent: Construction Loan vs Mortgage
Do you have a difficult time figuring out what you need: renting or buying a house? Here are several crucial things to help you make the right decision:
Buying May Be Right for You
- Planning to stay in the same place for several years
- Regardless of whether your finances or plans may change, you’re going to rent part/all of the house
- You can get a fair mortgage with affordable payments
Renting May Be Right for You
- Don’t know how long you’ll stay in the same place
- You can’t afford possible maintenance/repairs
- You expect changes concerning your finances and won’t be able to make mortgage payments
Homeownership is a cornerstone of the American Dream. However, to find out whether buying or renting a house is the right choice for you, you should take into several important issues. Read the above-mentioned points and make the best choice for you.
Author Bio: As an account executive, Michael Hollis has funded millions by using alternative funding (or construction loan vs mortgage) solutions. His experience and extensive knowledge of the industry has made him a finance (or keyword) expert at First American Merchant.