After years of home price declines and increased demand for rentals, homeownership is now more affordable than what you can rent a house for in 98 out of 100 major metro markets.
It is now cheaper to purchase a home compared to renting, according to a new report from real estate listing site Trulia.
| Renters! We Have A Question For You
With historically low interest rates expected to continue for at least 12-18 months, how long do you need to save money to buy your own home? o 0-12 Months |
Rising rent rates and attractive mortgage rates make it a great time to consider whether it is time to buy a house.
Over 2011-2012, some areas have experienced double digit rises in rents (10 – 13%) such as Sarasota and San Francisco.
| Compare Today’s Mortgage Rates
The Credit Sesame team believes that every person has the right to powerful and easy-to-use tools that will help them make smarter decisions about their loans and debt. Click here to get instant custom mortgage rates, prequalified offers and no unwanted calls. Your social security number is not required. |
Baker’s Dozen Money Sucking Homeownership Costs
Should you jump on the MLS, find a realtor and buy a house just because some research report says so? Not so fast.
The cost of owning a housing property entails much more than a mortgage payment. Here are a baker’s dozen money sucking homeownership costs that may make you think twice before buying a home.
In this 3 part series, DailyDollar coaches you on some of the often overlooked costs of owning a home.
Part 1: Upfront Costs To Buy A House
Before you spend one night in your own place, the process of buying a new home requires several expenses that your friendly online mortgage calculator will overlook including these four:
1) Home Appraisal
When applying for a mortgage, banks will require an appraiser to confirm that the contract price is not higher than what the immediate neighborhood supports based on other recent sales. Expect an appraiser to charge $300-$500 depending on house size.
2) Termite And Pest Inspection
Are tiny little bugs slowly eating the studs in the house? Do you need a pest control expert to inspect an older house for rodents? For $150-$250, a pest inspection will let you know. You might be able to skip this expense if you buy a brand new house that has never been lived in.
3) Home Inspection
What is an inspection supposed to do? An inspection checklist will ask things like: Is there evidence of a roof leak? Does the heating and cooling system work correctly? Does the shower drain fast enough? These are just a few of the critical items a home inspector will answer. Expect to pay $300-$500 depending on house size.
4) Closing Costs
Plan on budgeting about 2.5% of the mortgage loan amount for closing costs which include bank fees, title insurance, recording fees and other nickel and dime expenses. All fees will be itemized for you on a Good Faith Estimate that you receive within 3 business days of applying for the mortgage.
Part 2: Moving Costs
Relocating ain’t cheap. Be sure to budget properly for the big move by considering these four transition costs…read more
Part 3: Ongoing Housing Costs
The money drain is not over once you step foot into your very own house. Carefully budget ahead of time for the expenses associated with the ongoing upkeep and furnishing of your piece of the American Dream.
Comments(0)