Rent or Buy | Is It Worth Buying A House

Buying a home offers many advantages, one of the most significant being that it allows you to build equity (ownership) when you pay your mortgage each month. A common myth is that monthly mortgage payments are more expensive than rent. But, in some cases, mortgage payments can be less than rent. When considering homeownership for the first time, you need to decide whether buying makes financial and practical sense for you right now or if you are better off renting. Consider both the advantages and disadvantages to renting as well as buying, and weigh the pros and cons for your particular situation

Buying a home is a major financial step! Whether your looking for a new home or you`ve already found one; one of the first steps to obtaining a home mortgage loan is to check your credit report. You will need to verify that all accounts on your credit report are accurate, clean up any that are not correct.

Should you purchase a home at this time?

Benefits:

• Stable home environment, not moving every time your lease is up.
• Start a family and your children into a good school system.
• Start building equity in a home, rather than renting with no financial gains.

Drawbacks:

• Repairs and regular maintenance costs.
• Lifestyle change.
• Cash for "extras" like eating out or major purchases may be more restricted.
• Can you afford the house you want?

Determining this is an important step in the process of purchasing a new home. You may want to go over your finances with a financial advisor to assure you don`t over extend your finances. You can also discuss this matter with the mortgage loan professional that contacts you with your free quote. They will be able to answer many of your question. But in the mean time, you can use our mortgage calculators to define this and other financial issues.

Some tips on figuring the cost of a home mortgage you can afford:

Monthly salary.

• Investments.
• Other sources such as benefits, commissions, disability, etc.
• Current Debt: Credit card, installment, and other monthly bills.

The first question you need to answer is "How much house can I afford". Home ownership is within most consumers` reach. And the first step toward finding the right home is to quickly calculate your purchasing power and determine how much you can afford to pay each month. This saves you time by allowing you to focus on homes in your price range.

In planning stage, you should consider both the upfront and ongoing costs associated with purchasing a home:

Down payment ranges from 5% of the cost of the house upwards. The more you can put down, the more equity you will have in your home and the lower your monthly payment will be.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

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