Is Buying or Renting Right for You?
The decision to buy or rent depends on your current financial situation, your future plans and the lifestyle you want to live. Both options have their own set of benefits, and potential drawbacks, that should be carefully evaluated.
Buying may make sense if you...
- Have reliable income, good credit and documentation to verify your savings.
- Can afford at least a five percent down payment and related closing costs.
- Want a chance to build equity and be eligible for homeowner tax breaks and credits.
- Are financially able to take on home-maintenance/improvement projects.
- Have an adequate cash reserve to withstand a loss of job, long-term illness, or other financial setback.
- Are planning on staying in your home for at least four years.
Renting may make sense if you...
- Have a career or lifestyle that requires you to move frequently or suddenly.
- Prefer having a set monthly budget and cannot afford unforeseen home-maintenance expenses.
- Do not have the time or desire for home maintenance /improvements.
- Enjoy having amenities such as a pool, gym, concierge and tennis courts.
- Plan on downsizing your living space or retiring in the near future.
- Are experiencing a financial setback and/or rebuilding your credit.
The advantages of owning or renting are different for everyone, so be sure to consider these important personal situations and long-term goals before making your decision.
Tools and Resources
- CreditSmart® Online Training
- Mortgage Rates Hit 50-Year Low
- Buying a Home
- Step-by-Step Mortgage Guide
- Roles and Responsibilities
- Glossary of Terms
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