In March of 2018 the headline read “Rents rising at breakneck pace – but rising mortgage rates are keeping renters from buying”. Now a year later we are wrapping up February 2019 and the biggest story so far this year in home lending is that rates have dropped to their lowest level in a year. The 30-year fixed-rate mortgage averaged 4.35% in the February 21 week according to mortgage guarantor Freddie Mac. That was down slightly from the prior week and lowest since February 2018.
If you are renting you probably feel like you are paying a mortgage and if you live here in southern California that feeling is more like a reality. I recently talked with prospective home buyers Kevin and Katie here in San Diego about their desire to purchase the home they are currently renting. The landlord has encouraged them to make him an offer but at the moment they remain on the fence. Like many, they are asking if this is a good time to buy their first home. When they told me they pay $2,750/mo and would offer their landlord an estimated price of $610,000 I sent them this rent vs own comparison https://mcedge.tv/1cgzdu to help them make a decision.
With as little as 5% down their net mortgage payment would be $183/mo less than what they pay now in rent! With rates holding steady in the low 4% range when now would be a good time to get your own rent vs own comparison? To request your free analysis click here Free Rent Vs Own Comparison and include your monthly rent.
Broker | Mortgage Planner