National Rent Payments Increase: Save Money with a Mortgage

Shared by Hello Pam Evans Real Estate

Recent reports by the Federal Reserve indicate that, while national inflation rates appear to be down, the rental market seems to be showing a consistent increase in prices, which exceeds the rate of income growth in most areas.

Throughout the country, renters are paying an average of 3.7% more than they were just a few months ago. While this may not seem too dramatic, reports from the second quarter of 2015 have stated that U.S. renters can expect to spend approximately 30% of their income on monthly rent payments, which may even increase to 40% in some mainstream markets.

What Does This Mean For You?

If you’re currently a renter with a few months left on your existing lease, you may want to consider making an assessment of your present financial situation to see whether homeownership is a better option. Plain and simple, while the housing market has shown great improvements over the last few years, paying a mortgage is still more affordable than it was before the housing crisis.

Saving for a Down Payment

Still, while making the decision to switch from a lease to a mortgage may seem like the next logical step in your housing journey, it’s important to remember that you’ll need a down payment to close the deal. If you’ve already been setting money aside, chances are good that you’re in a solid position to begin the home buying process; however, if rising rent costs have left you struggling to find anything leftover in your budget, it may be time to seek the advice of an experienced real estate professional.

A solid agent will not only help you get your affairs in order in advance, but will also assess the current market in your area and refer you to a reputable mortgage lender. With the right team in place, you’re more likely to be armed with strategies for saving, as well as the knowledge to make sure your finances and credit are where they need to be to secure a home.

If you’re thinking of leaving the rental market and would like to learn more about homeownership in the Forsyth County/North Fulton area, I would love to help you. Finding a home that fits within your budget is entirely possible, so please call me with any questions you may have.

This post was sponsored by Hello Pam Evans Real Estate.