A lot of people have become trepidatious about buying a house, even though prices have stabilized in a lot of markets around the US. After all, a huge number of people are underwater on their houses. If you want to know whether it’s worth it to buy, you should really look at the long-term home price trends for your city and cities like it. It’s also a good idea to check out other economic factors, like a diversified and growing economy. (Detroit is really suffering when it comes to jobs, and that’s definitely why it’s so affordable to buy there.) But when it comes to the basics of renting versus buying, this infographic has some good pointers.
Nowadays, you have to have at least 10% down to get a mortgage. If you want to get a loan without mortgage insurance, you’ll need around 20%. Plus, you need some time to get ahead of the costs of home ownership, which is why they recommend that you know you’ll be staying in the area for at least 5 years; after that, owning starts to pay off compared to renting. Another factor a lot of people don’t consider is their commuting costs. If you have a two-hour commute from your new home, you should consider how much that will add to your gas budget and vehicle maintenance costs.
Compiled by: Home Insurance Blog