In 2018 the largest number of home buyers, at 36%, were Millennials and Generation Y (people ages 37 years of age and younger), according to a report by the National Association of Realtors (NAR). Sixty-five percent of these are first time home buyers. People within this age group are increasingly considering a move from renting or living with their parents to homeownership. Among the advantages of becoming a homeowner are the freedom to decorate and remodel your home as you choose, the stability of a relatively fixed monthly payment, the security of knowing you won’t be forced to move when your landlord decides to sell or raise the rent, and the ability to build equity in the home.
Renting as opposed to owning a home can be great when you think of things like not having to fix your toilet when it breaks or that pesky washer or dryer when they finally go to Laundry Heaven because your landlord is responsible for those things. With homeownership you will be responsible for when something breaks instead of having a landlord to deal with all the financial burden and scheduling. But with those newfound burdens also comes freedom. You now have the ability to decorate how you choose, without the need to ask permission, or to remodel your home to benefit your family’s needs as well as to increase your home value in the process.
That sense of freedom can be liberating, especially when it means you know you won’t be forced to move at a moment’s notice because your landlord has decided to sell or raise the rent. Landlords will periodically raise the rent, usually based on the rental market. According to an article in NAR from 2016, “a 3 to 5 percent annual increase is standard”. One of the advantages to a mortgage is that you may have the ability to get a fixed rate, which will mean you won’t have to worry about any fluctuations in your monthly housing expense. Other advantages include the freedom to have pets without the fear of being declined the ability to rent a home or apartment because they don’t allow pets. Often, even if pets are allowed, the landlord will require a steep pet deposit in the event that your pet(s) cause any damage to the property.
The difference between the cost of a monthly mortgage payment and your current monthly rental payment are also usually not that far off. This means that not only could you be investing in your future and home each month instead of lining someone else’s pockets with your hard-earned cash, but you could be paying less in housing expenses each month than you do currently. According to an article on NerdWallet.com from 2017, the “median monthly cost to rent” was $1,278 versus $1,909 in Maryland. With only a $631 difference you would be able to be applying your money toward a home of your own that will be building equity over the years rather than paying someone else while still being trapped to the terms and rules of a lease.
Currently, interest rates are still at a historic low. According to an article published by ValuePenguin, “mortgage rates today remain at historical lows, with over 60% of mortgage holders paying rates between 3.00% and 4.90% as of 2015”. In 2018 the average interest rate was 4.54% according to ValuePenguin. This reflects a 1.49% decrease over a ten-year period with the average interest rate in 2008 being 6.03%. The current low interest rates mean that homeownership remains an affordable option. So, if you are ready to take that next step into homeownership, then Veronica Sniscak is the right realtor to go to. With over 20 years of experience, she will help guide you through the whole process quickly and smoothly.