Everyone thinks it is a cut and dry decision, but it isn’t that simple. Each situation is different. Part of being financially savvy means understanding what works for you and your family.
In this episode, we dive into factors that you should consider when trying to decide to rent or buy. Because let's face it, owning isn't for everyone and neither is renting!
Things to consider:
Do you know the location and are sure you want to stay for an extended period of time?
Do you anticipate living in the same area for at least five years?
Does your budget allow for covering rent and maintenance (you own it, you fix it)?
Are you buying for the right reasons?
Have you spent time renting to build credit, save for the down payment, and have extra funds to fix whatever may need to be fixed?
Listen to the whole episode for why you should consider these things before committing or passing on a home purchase!
Thanks for joining us today for Debt Therapy. I'm your host, Jen Lee, and am ready to discuss refinancing with you today.
The most common loan you hear about refinancing is a mortgage. Back in the 80s, mortgage rates were normally around 15%. But today, the rates are hovering around 3%-4%. It makes it very desirable to refinance.
Length of time is something that many people do not factor in when looking to refinance their mortgage. If you have a mortgage that you have been paying on for 8 years, it is not recommended to refinance to another 30 year loan. You are essentially starting over and will pay more in interest. I would recommend at that point to look at a 15-year or 20-year mortgage. Depending on the rates, your overall payment may not change much, but the amount of interest you pay for the life of the loan will.
It is smart to exam your options side by side so you can see the difference in interest, loan length, total interest paying, and total principal being refinanced....