Monday, March 03, 2008

Home Plans: Buying vs Renting

Renting a home may be good at the moment, but eventually, you would seek for something permanent. Home rental prices are always increasing, and there is also the inconvenience of moving once the property is sold by the landlord. It is always good to have a property that you can call your own. But with the current high prices of house and lot in the city, it is not easy for the normal wage-earners to buy a home.

So the next best option is to apply for a loan from a mortgage company. Of course, you need to shell out a certain amount at the beginning, but in the long run it benefits the buyer as compared to long-term rentals.

You can choose from the various available mortgage terms like 15-years or 25-years term, fixed rates or variable rates, etc… For the fixed amortization, the value of the money paid today would not be the same as the value of the money in the future. You wage will most likely increase in the future but your amortization will not. For variable rates, it will depend on the external forces that affect the economy. In good times, the amortization is lower. But in crisis, interests are higher.

MoneyMagic is a good online resource for making informed choices regarding mortgage. Check out their site now and the options available. They can assist you in your plans.

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