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Should You Rent or Buy a Home?

Deciding whether to rent or buy a home is a big decision—one that depends on your lifestyle, financial situation, and long-term goals. There’s no right or wrong answer, but this simple exercise might help you find which option feels more aligned with where you are right now.

Take a look at the chart below and think about which options resonate more with your priorities:

 

Rent vs Buy a Home Quiz

What Do Your Answers Say About You?

  • If you answered mostly A’s, homeownership might be the right option for you. It offers stability, the opportunity to build equity, and the freedom to create a space that’s truly your own.

  • If you answered mostly B’s, renting might better suit your lifestyle for the time being. It’s ideal for those who value flexibility and want to avoid the responsibility of property upkeep.

Homeowners have nearly 40x more net worth than renters

The Financial Factor: Finances

If you’re considering buying a home, the key question is: Can you afford it? While the benefits of homeownership are significant, it’s important to ensure that it fits into your financial plan.

That’s where Greenway Mortgage can help. Schedule a call to go over your finances and discuss whether you’re ready to take the leap into homeownership. Even if you don’t feel ready just yet, our Loan Officers can guide you through the steps to prepare for the future. 888-616-9885.

 

Before You Go...Try Our Rent vs Buy Calculator 

Ever wondered what you could purchase for the amount you're spending in rent each month? 

Use this ๐ช๐ฎ๐ข๐œ๐ค ๐œ๐š๐ฅ๐œ๐ฎ๐ฅ๐š๐ญ๐จ๐ซ to see how your rent payment could look as a mortgage—๐™–๐™ฃ๐™™ ๐™๐™ค๐™ฌ ๐™–๐™›๐™›๐™ค๐™ง๐™™๐™–๐™—๐™ก๐™š ๐™ค๐™ฌ๐™ฃ๐™ž๐™ฃ๐™œ ๐™ข๐™ž๐™œ๐™๐™ฉ ๐™–๐™˜๐™ฉ๐™ช๐™–๐™ก๐™ก๐™ฎ ๐™—๐™š. 

Rent vs Buy Calculator

๐˜ž๐˜ฉ๐˜ช๐˜ญ๐˜ฆ ๐˜ต๐˜ฉ๐˜ช๐˜ด ๐˜ต๐˜ฐ๐˜ฐ๐˜ญ ๐˜ช๐˜ด ๐˜จ๐˜ฐ๐˜ฐ๐˜ฅ ๐˜ง๐˜ฐ๐˜ณ ๐˜ฎ๐˜ข๐˜ฌ๐˜ช๐˜ฏ๐˜จ ๐˜ณ๐˜ฐ๐˜ถ๐˜จ๐˜ฉ ๐˜ฆ๐˜ด๐˜ต๐˜ช๐˜ฎ๐˜ข๐˜ต๐˜ฆ๐˜ด, ๐˜บ๐˜ฐ๐˜ถ'๐˜ญ๐˜ญ ๐˜ฏ๐˜ฆ๐˜ฆ๐˜ฅ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฌ๐˜ฏ๐˜ฐ๐˜ธ-๐˜ฉ๐˜ฐ๐˜ธ ๐˜ฐ๐˜ง ๐˜ข๐˜ฏ ๐˜ฆ๐˜น๐˜ฑ๐˜ฆ๐˜ณ๐˜ช๐˜ฆ๐˜ฏ๐˜ค๐˜ฆ๐˜ฅ ๐˜ฎ๐˜ฐ๐˜ณ๐˜ต๐˜จ๐˜ข๐˜จ๐˜ฆ ๐˜ฑ๐˜ณ๐˜ฐ๐˜ง๐˜ฆ๐˜ด๐˜ด๐˜ช๐˜ฐ๐˜ฏ๐˜ข๐˜ญ ๐˜ญ๐˜ช๐˜ฌ๐˜ฆ ๐˜Ž๐˜ณ๐˜ฆ๐˜ฆ๐˜ฏ๐˜ธ๐˜ข๐˜บ ๐˜›๐˜ฆ๐˜ข๐˜ฎ ๐˜ข๐˜ต ๐˜Ž๐˜ณ๐˜ฆ๐˜ฆ๐˜ฏ๐˜ธ๐˜ข๐˜บ ๐˜”๐˜ฐ๐˜ณ๐˜ต๐˜จ๐˜ข๐˜จ๐˜ฆ ๐˜ต๐˜ฐ ๐˜จ๐˜ฆ๐˜ต ๐˜ฎ๐˜ฐ๐˜ณ๐˜ฆ ๐˜ข๐˜ค๐˜ค๐˜ถ๐˜ณ๐˜ข๐˜ต๐˜ฆ ๐˜ฏ๐˜ถ๐˜ฎ๐˜ฃ๐˜ฆ๐˜ณ๐˜ด.

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*With a fixed-rate mortgage, the monthly principal and interest payments are fixed. Changes to your taxes and insurance costs may cause your monthly mortgage payment to increase or decrease each year.

**2022 Survey of Consumer Finances

 


Costs that Come With Buying A Home

Jan 8
3:20
AM
Category | General

 

Buying a home is an exciting milestone, but it comes with financial commitments that go beyond the purchase price.

Understanding these costs can help you plan and budget effectively, ensuring you’re prepared for every step of the journey.

Here’s a detailed look at what to expect:

 

 

 

 

Down Payment and Earnest Money

Before you even purchase the home, you’ll need upfront cash for your earnest money and down payment. While many people believe you must put down 20%, there are loan programs that require much less—as little as 3.5%, or even 0% for those who qualify.

Your Monthly Mortgage Payment

Your monthly payment will typically include these three key components:

  1. Principal: The actual amount you’re borrowing.

  2. Interest: The cost of borrowing money for your home.

  3. Escrow: A third-party account that pays property taxes and insurance on your behalf.

Additionally, you’ll need to account for closing costs—a one-time payment due when your loan is finalized. These costs vary but often include:

  • Loan origination fees

  • Appraisal and inspection costs

  • Title insurance

  • Recording fees

 

Tip: You can negotiate with the seller to cover some or all of your closing costs. If that’s not possible, let’s discuss the option of rolling these costs into your loan.

Other Expenses to Budget For

Owning a home comes with ongoing expenses and responsibilities. Here are a few you should prepare for:

  • Maintenance and Upkeep: Routine repairs, landscaping, and other upkeep are necessary to protect your investment.

  • Utilities: Monthly bills for electricity, water, internet, and more.

  • Moving Costs: Whether you’re hiring movers or recruiting friends, set aside funds for a smooth transition into your new home.

If you have any questions about these costs or want to explore your financing options, the Greenway Mortgage team is here to help. Contact us anytime. 888-616-9885.

Contact Greenway Mortgage


 

When most people start thinking about buying a home or refinancing, one of the first things they do is start checking mortgage rates. And that’s when they might notice something a bit strange: mortgage rates don’t always seem to follow the Federal Reserve’s actions.

It’s true, while the Fed’s policies influence many aspects of the economy, they don’t directly set mortgage rates. So why do mortgage rates sometimes seem to go in the “wrong” direction, even after a Fed announcement?

Here are the key factors that can cause mortgage rates to move in unexpected ways:

1. The Fed Doesn’t Directly Set Mortgage Rates

The Federal Reserve, or the Fed, doesn’t directly control mortgage rates. It sets the rates for loans between banks, which can influence mortgage rates indirectly, but they’re not one and the same.

2. The Role of Mortgage-Backed Securities (MBS)

The rates lenders offer are more directly impacted by the price investors are willing to pay for mortgage-backed securities (MBS). Lenders bundle mortgages into these securities, which are then sold to investors. The higher the price investors pay for MBS, the lower mortgage rates tend to be—and vice versa.

3. Why Mortgage Rates Move on Expectations

Mortgage rates often respond to what the Fed says rather than what it does. For example, even if the Fed cuts rates, mortgage rates can rise if meeting notes or speeches signal that more increases are coming. Market sentiment and investor expectations play a big role here.

4. Other Influences on Mortgage Rates

Many factors beyond the Fed’s actions impact mortgage rates, including:

  1. Economic conditions: Job growth, GDP, and inflation all impact investor confidence and mortgage rates.

  2. Global events: Political and economic instability can shift money into or out of U.S. mortgage-backed securities.

  3. Inflation: High inflation often leads to higher rates, as investors seek returns that outpace inflation.

  4. The national deficit: Rising national debt can impact demand for U.S. investments, affecting mortgage rates.

We Follow Mortgage Rate Trends for You

As mortgage professionals, we monitor the market daily to help you navigate it. While no one has a crystal ball, our experience and market insights mean we’re here to help you make informed decisions about your mortgage options.

Have Questions? Reach Out. 888-616-9885

Whether you’re ready to buy, refinance, or just want to know more, we’re here to help you understand how market trends could affect your mortgage options.

Contact Greenway Mortgage


 

Thinking about purchasing a condo? For city dwellers, singles, couples, and anyone looking for a low-maintenance lifestyle, condos offer a unique homeownership experience. They’re often more affordable than detached homes, making them appealing for first-time buyers or those who want to downsize.

What is a Condo, Exactly?

A condo lets you own your individual unit while sharing ownership of common spaces with other residents. Your monthly “condo fee” helps cover maintenance and repairs in these areas, providing a convenient lifestyle with fewer home maintenance demands. Condo options range from high-rise apartments to townhouse-style setups, so there’s something for many preferences and budgets.

Why Buy a Condo?

Condo ownership provides many benefits, such as potential tax deductions, possible appreciation in value, and a community-oriented setup. However, understanding the financial and lifestyle aspects unique to condos is key to deciding if it's the right choice for you.

Key Considerations

Here are a few things to think about when considering a condo:

  • Community Fees and HOA Dues: In addition to your mortgage, be prepared for monthly condo fees. These can impact your budget, so it’s essential to understand what’s included and how they may affect your financing.

  • Rules and Regulations: Condo communities come with specific rules around property use, renovations, and shared responsibilities. Knowing these will help you decide if the lifestyle is the right fit.

Curious about what else you need to consider? Download the our Free Condo Buying Guide to learn:

  • Is a condo the right choice for you?

  • What makes a condo unique

  • How to qualify the property

  • Key questions for your real estate pro, lender, and condo association

  • Tips for a successful condo purchase

  • Glossary of must-know terms

 

 

With this guide, you'll be fully prepared to make confident, informed decisions on your condo journey. From choosing the right property to navigating the process with ease, this guide covers it all. Get started today and discover if condo living is right for you!

Have questions? The team at Greenway Mortgage is happy to help. Give us a call at 888-616-9885 or email us at leads@greenwaylending.com.


 

Does Waiting for Lower Mortgage Rates Make Sense?

Many renters are waiting for mortgage rates to fall before purchasing a home. However, if home values rise while you wait for rates to drop, you may not save as much on your payment as you think. Plus, you could end up spending a lot of money on rent!

Let’s explore some examples of initial principal and interest payments on a hypothetical 30-year fixed-rate mortgage of $400,000 compared to a payment one year later after rates have dropped and home values have risen.

Example 1: One-Point Drop in Rates with 5% Appreciation

  1. Loan Amount if Bought Now: $400,000

  2. Interest Rate: 6.50%

  3. Monthly Principal & Interest Payment: $2,528.27

Now, let’s assume you wait one year, and the home appreciates by 5%:

  1. New Loan Amount: $420,000

  2. New Interest Rate (after a 1% drop): 5.50%

  3. New Monthly Principal & Interest Payment: $2,384.71

  4. Monthly Savings: $143.56

If you pay $2,000 in rent for the 12 months you wait, it would take 167.2 months (or 13.93 years) of payment savings to recoup your rent cost. Instead of paying the extra $20,000 at sale, you would have earned an average of $1,667 in equity each month during that time.

Example 2: Two-Point Drop in Rates with 10% Appreciation

  1. Loan Amount if Bought Now: $400,000

  2. Interest Rate: 6.50%

  3. Monthly Principal & Interest Payment: $2,528.27

Assuming you wait one year again, and the home appreciates by 10%:

  1. New Loan Amount: $440,000

  2. New Interest Rate (after a 2% drop): 4.50%

  3. New Monthly Principal & Interest Payment: $2,229.42

  4. Monthly Savings: $298.86

In this scenario, waiting would also cost you. It would take 80.3 months (or 6.69 years) of savings to recoup your rent costs. Instead of paying the extra $40,000 at sale, you could have been earning an average of $3,333 in equity per month.

The Bottom Line

There’s no guarantee that home values will rise or that mortgage rates will drop. However, if you have the ability to buy now, waiting for a better rate could end up costing you more in the long run.

If you're considering your options, don't hesitate to reach out. The Greenway Mortgage team is here to help you navigate this decision!

Contact us today at 888-616-9885 or click here. 

Contact Greenway Mortgage

 


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