In most cases owning will have an advantage over renting. You will be gaining equity rather than paying a substantial amount of your money to increase your landlords home-equity. Within a 10 year period of paying monthly rent of $700.00/month will have you paying $110,719.00 in that time and paying $1200.00/month will have you paying $189,618.00 in the same 10 year period. Even with the continuous debate of renting vs buying being good or bad and it being a pointless one, it still comes down to $189,618.00 is a lot of money to be contributing somewhere with nothing to show in return for amount paid. Even if homes prices have grown at an annual compound rate of .3%(adjusted for inflation) it's still a .3% increase in addition to the building of your payback mortgage equity that you wouldn't have if paying rent. Sometimes, finding the right home at the right price could have you paying equal or lower back in a mortgage with interest then the rent your paying.
A home should never be your main investment, but it is a major financial decision that can give you peace of mind and a lovely place to live that is yours. If you are going to pay rent why not invest in a home that at least gives you equity in time with each payment made. Ofcourse, there are many factors that go in to being sure you are investing and not making a dumb money move that just sounds smart. A knowledgeable Realtor coupled with a good loan officer can help you.
There are many programs out there to help with interest rates and assistance, however one I like is the Grants for Grads program. It is a program that within a 5 year home ownership is a 0% payback on the 2nd note. Until the 5 years are up, it is considered a silent 2nd note that rapidly declines in a percentage payback within the 5 years if you decide to sell prior to the 5 years.
Grants for Grads is a 2.5% - 5% on purchasing agreement assistance that is available for qualifying graduates that have graduated with a degree in the past 4 years. Certain income requirements are needed per county and a credit rating of 640 or higher is necessary to qualify. You do not need to be a first time buyer for Grants for Grads to be approved. If you have not owned in the last three years you may also qualify for this Grant too.
If you would like to know more on programs that can help assist you in making the step from renting to buying; I am here to help.
Gwynn Burns, Keller Williams - Sales Partner with The Ez Sales Team