Buying vs renting_ three factors to consider _ smartasset. com

For some the buying vs renting decision is a purely emotional. Bosomtwe rural bank Often times it’s based on lifestyle (a desire to settle down and start a family or a fear of being tied to a serious financial commitment). Mumuadu rural bank For others it’s a rational choice that simply boils down to numbers and hard facts.

In either case there are countless websites, blogs, calculators and books on how to go about making the biggest financial decision of your life.

Regional rural bank ppt The SmartAsset calculator, however, can shed some light on these pressing financial questions on a case by case basis.

To better help first time buyers through the thought process we reduced the complicated formulas, and questions surrounding the buying vs renting debate into a three key criteria: personal finance, location and lifestyle. Regional rural bank recruitment 2015 These are three categories that every first time home buyer should asses, prior to deciding to leave renting behind and move on to home ownership. Abokobi rural bank 1. Meaning of rural bank Personal Finances:

A great credit score will allow you to take advantage of historically low mortgage rates. Rural bank notification How you file your taxes could allow you to take advantage of the great tax benefits that come with owning a home.

The most important factor in making personal finance decisions, believe it or not, are your personal finances. Regional rural bank pdf The most crucial of which are your credit score, the amount of debt you owe, and your taxes (your tax bracket and how your taxes are itemized).

Not only can SmartAsset model your personal finances it can also help you with your credit score. Regional rural bank notification 2015 If you don’t know your credit score it can help you find it, show you ways to improve it, and protect before you move ahead with purchasing your first home.

A first-time buyer with a solid credit score has all sorts of avenues open to them. Regional rural bank exam The most attractive of which is a fixed-rate mortgage with an interest rate of around 3.0- 3.8%.

With a healthy credit score you could dramatically increase your savings over renting especially in markets where real estate is in high demand.

Real estate is all about location, and for the first time buyer it is even more critical. R r b regional rural bank Location directly impacts the price of the property you are looking to purchase or rent. Regional rural bank merger But when we mention location we’re not talking about beach front property, or a historic part of town. Regional rural bank act 1976 We’re specifically talking about geographic location like metro-areas, rural towns and the mid-size cities in between.

The SmartAsset calculator helps you calculate the impact of buying vs. Regional rural bank wiki renting based on your own finances and your geographic location. For example you, could save roughly 50% every month by buying a home in Florida instead of renting a home in Florida. Regional rural bank previous year question papers But if you take your credit score and taxes to a trendy Los Angeles neighborhood you could end up making marginal savings.

Property values, taxes and the higher cost of living in hot markets like San Francisco, New York, and Seattle are significant factors in driving home ownership costs.

According to Trulia’s report released in September 2012, it is roughly 44% cheaper per month (nationwide average) to buy than to rent. What is regional rural bank According to the model, prospective homeowners with good credit (capable of securing a fixed-rate mortgage of 3.5%), and steady income (with itemized deductions) can save anywhere from 20% to 81% per month over renting. Regional rural banks in india These massive savings include all the costs of buying and maintaining a home, and are fueled entirely by low interest rates on fixed-rate mortgages.

The only way for a first time home buyer to take advantage of the great rates is to have an equally great credit score. Regional rural bank in india Without buyers are likely to miss out on the low mortgage rates at the core of the savings modeled by Trulia.

The reality that most American’s are still in debt may explain why the majority continue to rent in areas where property values are high (west coast and the north east), despite rent increases having outpaced inflation since 2008. Regional rural bank history 3. Regional rural bank india Lifestyle:

Ultimately the decision to buy or rent is based on short-term plans, the inevitable changes to your lifestyle, and how those fit with life and career goals. Regional rural banks act 1976 If you’re young, and aren’t at least 70% sure that the area where you currently live is where you want to spend the rest of your days, then it may be best to avoid the 30 year ball and chain (a traditional fixed-rate mortgage).

Buying a home has massive upfront costs which can only justified by the long term benefits and savings. Regional rural bank If you plan on buying a home in an expensive city like San Jose, and then move to New York for a promotion after two years, you could run the risk of setting yourself back financially.

If you plan on staying in your next home in a major city for less than 3-5 years then it’s almost always cheaper to rent, anything shorter can negate the financial benefits of home ownership.

­­No matter where you live in the United States understanding the basics of personal finance could help you save significant amounts of money when considering buying vs renting. Rural bank jobs There are enormous financial benefits to be had in addition to the satisfaction and stability that comes from owning your own home.

If you’re still on the fence about renting vs buying, take a few minutes to plug your information into the SmartAsset tool, the numbers don’t lie. Rural regional bank You could be a lot closer to home ownership than you think.