Renting vs. Owning

rentvsownRenting Vs. Owning

 

Renting vs. Owning is one of the greatest debates consumers face. What are the pros and cons of each? Which option is cheaper? What is better for my current lifestyle? These are some of the questions renters face when trying to decide whether home-ownership is the right choice for them.

Contrary to popular belief, renting may not actually be cheaper than owning your own home. Rent prices are on the rise and starting to exceed the cost of a mortgage payment, and there are many other benefits to home-ownership that you may not have thought of, such as investment opportunity, tax deduction, stability, and freedom.

 

Investment Opportunity

Some people say investing in a home is risky; but with no risk, there is no reward. Studies conducted by the Federal Reserve have shown that owning can provide a net worth that is from several to hundreds of times higher than that of renters. When you own, improving your home increases its value. When you rent, improvements only increase value for your landlord. Ultimately, paying rent will only get you a roof over your head. There are virtually no benefits that paying rent offers beyond having a living space. Further, making mortgage payments on time helps build your equity and credit score.

 

Tax Deduction

Some people benefit from claiming deductions for mortgage interest and real estate taxes. Others find a standard deduction more valuable. Even if you exclude the tax benefit, the real cost of owning can still be less than renting.

 

Stability and Freedom

When you move into a home, it is something that is truly yours. You are free to decorate your environment as you please without worrying about restrictions from your landlord. By settling into a home, you will likely find yourself more involved in the community, whether that is through volunteering, participating in your home owners association, or simply establishing relationships with your neighbors. Renting is typically less stable than home-ownership and relationships with those around you tend to be avoided. Payments for a mortgage can be consistent with a fixed-rate mortgage, making the payment process easier.

 

So, with the cost of rent on the rise, finally taking that leap into home-ownership may be well within your means and could prove to be beneficial. Consult with a loan officer in your area today and we can answer any questions you may have!

If you are thinking about home-ownership, you may want to check out our blog on Inlanta’s Home Loan Roadmap.

 

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ABOUT INLANTA MORTGAGE

Headquartered in Brookfield, Wisconsin, Inlanta Mortgage is a growing mortgage banking firm committed to quality mortgage lending, ethical operations and strong customer service.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is an agency approved lender for Freddie Mac and Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs.

Inlanta Mortgage was recently named a Top Workplace for a third time in 2015. Inlanta has also received the Platinum Million Dollar USDA Lender Award and has been recognized as a Top Mortgage Employer by National Mortgage Professional and a Top 100 Mortgage Banking Company and 100 Best Mortgage Companies to Work For by Mortgage Executive Magazine.

Inlanta Mortgage, Inc. NMLS #1016.

4 Reasons To Buy a Home Now

Time To Buy

Although we risk sounding like a broken record (in May we posted that it was time to buy…) market conditions continue to be ideal for home buyers.

Supply Shrinking

Inventory levels are declining across the country. When supply shrinks, homes in the best locations with the most coveted features will sell quickly. With fewer homes on the market, finding the home of your dreams will become increasingly difficult.

Rising Prices

Although prices are expected to hover around the bottom throughout the winter, most industry experts project appreciation heading into 2013. According to a recently released study by Zillow, professional forecasters expect home price to rise by an average of 2.3% in 2012.

Rent is Rising

According to Trulia, rents are outpacing prices in 22 of 25 of the largest rental markets in America. Although housing prices have increased, rents have risen faster at 5.4% year over year.

Rock Bottom Rates

While interest rates continue to hover around record lows, they won’t remain this low for long. As the economy improves, rates will increase. The average 30-year fixed mortgage rate before the financial crisis was 6.57% (Freddie Mac, August 2007).

Would you like more information on the loan application process and programs designed for your specific financing needs?  Contact a licensed mortgage professional near you to discuss your home financing options or begin the loan application process today.  *No down payment or low down payment options available.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.

*Programs subject to change and dependent upon credit approval. Contact your Inlanta Mortgage licensed loan officer for program details, requirements, and eligibility.

When is Owning Better Than Renting?

 

Rent or Buy a House

When is owning better than renting?

According to a new analysis by Zillow, buying is a better financial decision than renting for most buyers who intend to live in a home for at least three years.

Zillow analyzed the “breakeven horizon” in more than 200 metropolitan areas and 7,500 U.S. cities to determine how many years it would take before owning a home becomes more financially advantageous than renting the same home. In more than 75 percent of the metro markets analyzed, a homeowner would break even after three years or less of owning a home.

All possible costs associated with buying and renting were incorporated into the analysis, including downpayment, mortgage and rental payments, transaction costs, property taxes, utilities, maintenance costs, tax deductions and opportunity costs, while adjusting for inflation and forecasted home value and rental price appreciation.

In some metro areas where home values fell dramatically during the housing recession, homebuyers break even after less than two years of owning a home. The Miami-Ft. Lauderdale metro is among the most favorable for buying, with homeowners breaking even after only 1.6 years of living in the home. However, in the San Jose metro area, where home values are among the highest in the nation, a buyer must commit to living in their home for 8.3 years before they will break even.

“Across most of the country, historic levels of affordability make buying a home a better decision than ever, especially considering rents have risen more than five percent over the past year,” said Stan Humphries, Zillow chief economist. “This is the first analysis of metros and cities that presents the buy versus rent decision in an intuitive way, by telling consumers how long they must live in the home before buying breaks even with renting financially. It’s much more understandable, and therefore useful, than the abstract notion of a simple ratio of prices to rents. If we want consumers to act on market information, we have to align it with how they think about the issue and make it straight-forward to grasp.”

Original Sources: Zillow, Forbes

Are you looking to make the leap from renting to home ownership? Here are some additional links regarding the benefits of home ownership that you may find useful:

Are you ready to discuss your home financing options with a licensed mortgage professional? Contact an Inlanta Mortgage loan professional near you.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products,  as well as a full suite of jumbo and portfolio programs. The company is  fully delegated HUD-FHA including FHA 203K, VA, and USDA approved.  Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016. Inlanta Mortgage is proud to be a recent recipient of a 2012 Top Workplace Award.

Rents Rise as Rental Vacancies Decline

As rental vacancies decline, rents rise. It’s a simple matter of supply and demand. Rising rent prices make rental properties more lucrative to investors who then flock to purchase homes and get in on the action. As a result, first time homebuyers looking to take advantage of low rates and low home prices will face stiff competition from investors.

Rents Rise as Rental Vacancies Decline

 

All that being said – don’t let yourself become discouraged! Now is still the best time to purchase your first home. 15-year and 30-year mortgage rates are at all time record lows. Consult a licensed mortgage loan professional to get
pre-approved for a mortgage loan today. Armed with a pre-approval letter, a Realtor can help you find the home of your dreams. Read more about why you need a pre-approval here.

Are you ready to take advantage of the lowest mortgage rates in history and low home prices? Contact and Inlanta Mortgage loan professional to discuss your specific financing needs and get your pre-approval letter today. Click here to find an Inlanta Mortgage loan officer near you.

Still on the fence? Read more about rising rent prices here or discover why home ownership matters here.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.

 

Graphic Source: ClearCapital.com

Housing Outlook Brightens

Market Turnaround Expected

Home starts and sales are on an upword path according to Chief Economist David Crowe of the National Association of Builders (NAHB).

“No one is anticipating that an upward path for housing will run in a straight-line trajectory,” said Crowe. “The economy is in an uneven recovery and we can expect some corresponding ups-and-downs in the housing market in the months ahead. However, NAHB believes that on the whole, we can expect a slow and gradual recovery in housing starts, home sales and the overall housing market in 2012.”

According to the NAHB, new-home sales are expected to climb from a record-low of 305,000 units in 2011 to 357,000 this year and 505,000 in 2013. Existing single-family sales are expected to follow suit and rise from 3.8 million last year to 4.4 million in 2012 and 5.4 million next year.

Housing starts are also anticipated to move in the same upward trajectory, Crowe said, with single-family housing production increasing from 434,000 units last year to 503,000 this year and a more solid 660,000 in 2013.

On the multifamily side, starts posted a healthy 55 percent increase in 2011 over 2010.

“A lot of newly formed households have become renters, so we need more rental units,” Crowe said. “We don’t expect to see the same rate of increase moving forward, but we should continue to see a healthy recovery.”

NAHB is anticipating that multifamily starts will rise from 177,000 units last year to 216,000 in 2012 and 235,000 in 2013. With many households choosing to stay in place and remodel their homes rather than move, residential remodeling is expected to rise 12 percent this year and another 7.9 percent in 2013.

Are you a renter considering a new home purchase to avoid rising rent? Contact an Inlanta Mortgage  loan professional to get pre-approved today! Or maybe you are interested in taking advantage of low mortgage interest rates to purchase a different home? Whatever you financing needs, Inlanta Mortgage professionals are here for you. Click here to located a licensed mortgage loan progessional near you.

Inlanta Mortgage operates more than 30 branches in 15 states and offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.

 

 

 

Housing Outlook Brightens

Market Turnaround Expected

Home starts and sales are on an upword path according to Chief Economist David Crowe of the National Association of Builders (NAHB).

“No one is anticipating that an upward path for housing will run in a straight-line trajectory,” said Crowe. “The economy is in an uneven recovery and we can expect some corresponding ups-and-downs in the housing market in the months ahead. However, NAHB believes that on the whole, we can expect a slow and gradual recovery in housing starts, home sales and the overall housing market in 2012.”

According to the NAHB, new-home sales are expected to climb from a record-low of 305,000 units in 2011 to 357,000 this year and 505,000 in 2013. Existing single-family sales are expected to follow suit and rise from 3.8 million last year to 4.4 million in 2012 and 5.4 million next year.

Housing starts are also anticipated to move in the same upward trajectory, Crowe said, with single-family housing production increasing from 434,000 units last year to 503,000 this year and a more solid 660,000 in 2013.

On the multifamily side, starts posted a healthy 55 percent increase in 2011 over 2010.

“A lot of newly formed households have become renters, so we need more rental units,” Crowe said. “We don’t expect to see the same rate of increase moving forward, but we should continue to see a healthy recovery.”

NAHB is anticipating that multifamily starts will rise from 177,000 units last year to 216,000 in 2012 and 235,000 in 2013. With many households choosing to stay in place and remodel their homes rather than move, residential remodeling is expected to rise 12 percent this year and another 7.9 percent in 2013.

Are you a renter considering a new home purchase to avoid rising rent? Contact an Inlanta Mortgage  loan professional to get pre-approved today! Or maybe you are interested in taking advantage of low mortgage interest rates to purchase a different home? Whatever you financing needs, Inlanta Mortgage professionals are here for you. Click here to located a licensed mortgage loan progessional near you.

Inlanta Mortgage operates more than 30 branches in 15 states and offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.

 

 

 

Housing Outlook Brightens

Market Turnaround Expected

Home starts and sales are on an upword path according to Chief Economist David Crowe of the National Association of Builders (NAHB).

“No one is anticipating that an upward path for housing will run in a straight-line trajectory,” said Crowe. “The economy is in an uneven recovery and we can expect some corresponding ups-and-downs in the housing market in the months ahead. However, NAHB believes that on the whole, we can expect a slow and gradual recovery in housing starts, home sales and the overall housing market in 2012.”

According to the NAHB, new-home sales are expected to climb from a record-low of 305,000 units in 2011 to 357,000 this year and 505,000 in 2013. Existing single-family sales are expected to follow suit and rise from 3.8 million last year to 4.4 million in 2012 and 5.4 million next year.

Housing starts are also anticipated to move in the same upward trajectory, Crowe said, with single-family housing production increasing from 434,000 units last year to 503,000 this year and a more solid 660,000 in 2013.

On the multifamily side, starts posted a healthy 55 percent increase in 2011 over 2010.

“A lot of newly formed households have become renters, so we need more rental units,” Crowe said. “We don’t expect to see the same rate of increase moving forward, but we should continue to see a healthy recovery.”

NAHB is anticipating that multifamily starts will rise from 177,000 units last year to 216,000 in 2012 and 235,000 in 2013. With many households choosing to stay in place and remodel their homes rather than move, residential remodeling is expected to rise 12 percent this year and another 7.9 percent in 2013.

Are you a renter considering a new home purchase to avoid rising rent? Contact an Inlanta Mortgage  loan professional to get pre-approved today! Or maybe you are interested in taking advantage of low mortgage interest rates to purchase a different home? Whatever you financing needs, Inlanta Mortgage professionals are here for you. Click here to located a licensed mortgage loan progessional near you.

Inlanta Mortgage operates more than 30 branches in 15 states and offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.

 

 

 

Housing Expectations 2012

Housing Expectations 2012

Mortgage Rates Expected to Rise
The Mortgage Bankers Association’s latest forecast indicates that the rate on the 30-year fixed rate mortgage will average about 4.3% in the second quarter of 2012.  Although those mortgage rates are still quite low –  especially when you compare it to the 6% or 7% borrowers paid at the height of the housing boom –  that’s still a bump up from the 3.88% 30-year fixed rate mortgage average reported in Freddie Mac’s Weekly Primary Mortgage Market Survey on April 12, 2012.

Homebuyers Face Off with Investors
Favorable mortgage rates, low home prices and rising rent costs have made the current housing market the perfect opportunity for investors. This means, when looking for bargains, homebuyers will face off with investors.

“This is true particularly at the lower end of the market and with first-time homebuyers” said Jed Smith, managing director of quantitative research for the National Association of Realtors. “One of the strongest recent housing trends: Many investors pay cash. These cash offers are an obstacle for buyers who need mortgages because sellers prefer buyers who can pay cash to close quickly,” Smith said.

Investors bought about 23% of the homes sold in January, according to the NAR’s latest numbers. That’s up from 21% in December, and that trend is not expected to shift this spring.

More Homebuyers Expected to Jump in the Game
Industry experts expect more homebuyers may soon get off the sidelines. According to Fannie Mae’s March 2012 consumer attitudinal National Housing Survey, several key housing market indicators point to increasing numbers of home purchases. Read more about rising rent prices and Fannie Mae’s survey here.

Whether you are ready to make the leap to home ownership or not, it is never too early to begin learning about the process. Explore our other blog posts on the Home Buying Process here. Learn why home ownership matters, why you need to get pre-approved for a mortgage before shopping and more.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.

 

Rising Rent Prices Expected

Rent or Buy

73% of people think now is the time to buy.

According to Fannie Mae’s March 2012 consumer attitudinal National Housing Survey, several key housing market indicators point to increasing numbers of home purchases. Why? Americans now expect both home and rental home purchase prices to increase over the next year.

“Conditions are coming together to encourage people to want to buy homes,” said Doug Duncan, vice president and chief economist of Fannie Mae. “Americans’ rental price expectations for the next year continue to rise, reaching their record high level for our survey this month. With an increasing share of consumers expecting higher mortgage rates and home prices over the next 12 months, some may feel that renting is becoming more costly and that homeownership is a more compelling housing choice.”

Rates remain low and home prices are on the rise. Inlanta Mortgage loan officers are here to help you evaluate if now is the time to become a homeowner. Our mortgage professionals understand that the decision to purchase a home is often the most important financial decision you will ever make and can help you make rent versus buy calculations. Click here to find a licensed mortgage loan officer near you.

Here is some of the raw data availalbe in the March 2012 Monthly National Housing Survey conducted by Fannie Mae:

  • 33% of respondents expect home prices to increase over the next 12 months – up 5% percentage points from last month
  • On average, Americans expect home prices to increase 0.9% over the next 12 months
  • 39% of Americans expect mortgage rates will go up in next 12 months
  • 73% of respondents believe now is the time buy a home – up 3 percentage points from last month
  • the number of respondents saying it’s a good time to sell also increased one percentage point from last month
  • 48% of respondents expect home rental prices to increase in the next 12 months. In fact,  respondents expect home rental prices to increase by 4.1% over the next 12 months – the highest recorded number to date

Access the March 2012 National Housing Survey Data Release click here.

Whether you are ready to make the leap to home ownership or not, it is never too early to begin learning about the process. Explore our other blog posts on the Home Buying Process here.  Learn why home ownership matters, why you need to get pre-approved for a mortgage before shopping and much more!

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS# 1016.