A major news media blog post recently said you should not put your money into buying a house. Their report stated that rising prices and rising mortgage rates are pointing towards renting being the better option than buying. But it did not go so far as to recommend that you should not buy a home.
My opinion is that this is a headline that is designed to attract readers. But I think it went a tad over the top.
Yes. Mortgage rates are rising. But is it enough to deter you from buying your dream home? Let’s take a look. As an example let’s look at a mortgage for $300,000. The current rate is 3.83%. The payment, for a 30 year mortgage fixed rate would be $1403 for principle and interest. The rate that is currently forecast for early 2018 is 4.3 %. This would raise the payment to $1484.61. Is this enough of a raise to deter you? I should hope not. If you rent, you rental rate on a similar home would raise probably a similar amount. And then it would raise again every year. So I suggest that you buy now and lock that payment in for the next 30 years.
The report suggests that, in many areas of the country renting may be a better option. It looks to me that this is yet another headline that is used to attract more readers.
Oops! Time for the commercial that my web master insists upon. When it becomes time to contact a Realtor, call us. Call Bunny and Art Reiman at 732-598-7700. Or visit our web sites – www.BunnyandArt.com www.55PlusInOcean.com www.55PlusinMonmouth.com , to begin your search for your new home.
So here’s the bottom line. Buy a house. Pay your mortgage, not a landlords. And use this a another tool to secure your long term financial plan.