Did you know that the average monthly cost for renting a one-bedroom apartment is around $1,078? If you plan on getting married in the next year and are thinking of renting an apartment with your spouse, you might wonder about rent costs. You might also wonder if it would be better to buy a house rather than renting. Buying a house is probably a better choice if you can get approved for a mortgage, and here are some basic things to know.
1. There Are Many Mortgage Loan Options
Many newly married couples decide to rent apartments when they get married because they believe this is their only option. Renting is not your only option, though. Today, you can find many mortgage loan programs, and you can probably find one with eligibility requirements that you can meet.
For example, you might need 20% down with some loan programs, but not will all. You can find loan programs that require only 3.5% down or less. Therefore, if you think you need a large down payment to buy a house, you might decide to rent. The truth is, though, that you do not need a large down payment. If you work with a mortgage lender, they might find you loan programs that you can use with your current financial situation.
2. Owning Might Cost Less
As mentioned above, renting is expensive. Did you know that you might be able to pay less for a house payment than for rent? For example, if you could find a house for $100,000 and get a loan with a 5% interest rate, your monthly payments would be roughly $537. Owning a house also requires paying property taxes, home insurance, and other expenses, though. If you add up all these things, you might pay less per month with a house payment than you would for rent.
3. Owning a House Provides Other Benefits
In addition to paying less each month when owning a house, you can also receive other benefits from homeownership. The main one is the ability to build up equity in your home. Every time you pay your monthly mortgage payment, your principal balance decreases, and your equity increases. Secondly, you have more freedom when you own a house, and there are many other benefits of owning a home.
If you want to consider buying a house instead of renting, contact a mortgage lender to find out what you can do to apply for a mortgage.