Lake Oswego Real Estate Why You Should Buy A Lake Oswego Home And Not Rent

There are many reasons to purchase a Lake Oswego home instead of renting.  Either way in both cases, you are paying off a mortgage.  When you rent, you are helping to pay off your landlord’s mortgage with your monthly payments.  When you buy a Lake Oswego home, you build equity and continue to pay off your own mortgage instead. Wouldn’t you rather have any payment be to your benefit?https://lakeoswegorealestateblog.wordpress.com

Buy a Lake Oswego Home vs. Renting

Gallon of paint: $30. Paintbrush: $17. Not having to ask permission from a landlord to paint that living room accent wall the color you’ve always dreamed of: priceless.

If you’re thinking about buying a home and you like saving money, 2016 is the year to become a homeowner. Thanks to relaxed requirements, it’s easier than in previous years to unlock the door to your dream home. Plus, now is an affordable time to buy, and owning a home comes with many benefits that renting doesn’t offer.

Here are some reasons why you should consider buying this year:

The Cost of Rent is Insanely High

Rental rates across the country are surging and don’t appear to be slowing down anytime soon. Rents increased an average of 3.7% from 2014 to 2015. But they spiked even more in larger rental markets, jumping up a whopping 14.9% in San Francisco, 12.9% in San Jose, 11.6% in Denver and 9.5% in Kansas City, Mo.

Despite such increases, most renters’ incomes have not gone up, raising an issue of affordability. In the last decade, the number of renters spending more than half of their incomes on rent has risen from 7.5 million to 11.4 million. Yikes! That’s a lot to be spending on housing each month.

These days, it’s cheaper to own a home. Home buyers can expect to pay about 15.3% of their incomes on mortgages.

You’ll Build Equity

Unlike renting, owning a home is an investment that builds equity. When you write a rent check each month, sure, you’re paying for a place to live, but you don’t get to see the value of the building you’re living in appreciate. If you’re planning on sticking in a particular area for at least 5 years, it might be in your best interest to go ahead and buy. After those 5 years are up, you’ll already have equity in your home. You can’t say the same after 5 years of renting.

Low Interest Rates

Interest rates are historically low right now, at around 4% for a 30-year fixed-rate mortgage and around 3% for a 15-year fixed-rate mortgage. Rates that low are hard to beat – it wasn’t that long ago that they were in the double digits. Not many people in years past have been able to say they got their dream home for a 4% interest rate. By locking in a low rate now, you won’t have to worry about when rates will start creeping back up again.

Down Payments are Lower

Over the past few years, many lenders have lowered down payment requirements. That’s especially helpful for home buyers who may have a reliable income and good credit, but who haven’t been able to save much money for a home due to high rental rates. In some cases, down payments can be as low as 3% to 5%. Federal Housing Administration loans, or FHA loans, also usually come with lower down payments, around 3.5%. FHA loans require mortgage insurance, but the monthly premiums for that insurance has dropped, making them more affordable for potential home buyers.

You Don’t Need to Have Perfect Credit

Credit requirements for buying a home aren’t nearly as stringent as they once were. Of course, the higher your credit score, the better, but if you have less-than-perfect credit, your dream home isn’t necessarily out of reach. A score of 720 or higher is usually considered to be outstanding by most lenders. However, in spring of 2014, 33% of loans were for borrowers with a credit score below 700. That percentage was up from 27% in 2013.

Source: PrimeLending

SEARCH FOR REAL ESTATE

There are links above to search for real estate.  I have a new website where you can search or you can use my mobile phone app as well. My website and mobile app provide you with access to all listings available on the RMLS™ system regardless of who the listing agent or brokerage may be. Listings are updated frequently throughout the day giving you the information you need, when you need it.

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1978 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs!

“There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is in violation of federal copyright laws

Advertisements