Let’s compare the costs and benefits of renting and owning.
If you're choosing between renting and owning, it's important to look past the monthly payment. Renting is sometimes (not always) cheaper by the month. Over time, though, the benefits of owning typically make a purchase a much better deal.
Our Renting vs Owning Calculator will show you how the costs and benefits might compare for your scenario.
When deciding keep in mind these key reasons why so many Americans continue to value homeownership. Let’s take a look at some financial benefits and non-financial benefits to owning a home.
The Financial Benefits of Owning a Home
Owning a home is a huge wealth-building tool and it provides financial stability over renting by locking in your monthly housing payments for the length of your home loans.
An article from Forbes explains: “Understanding the potential benefits of homeownership helps individuals see the value of owning property instead of renting. . . . household wealth among homeowners is a whopping 1,469% higher on average compared to renters, excluding home equity, making the allure of homeownership even more enticing.”
Over time, owning a home helps boost your net worth. It also sets future generations up for success as you pass that wealth down. After all, homeownership is the American dream.
The Non-Financial Benefits of Homeownership
Buying a home is not just a financial decision it’s a lifestyle decision. A few non-financial benefits include things like:
- Freedom and control over your living space
- Giving you a greater sense of pride and purpose
- Helps with community engagement
Bottom Line:
Buying a home is certainly a powerful decision and it’s of the most important and biggest things you’ll do in life. Having a place to call your own and build wealth is what the homeownership dream is all about.
If you have questions about the numbers from our Rent vs Own Calculator, have any general questions, or would like to get started on your purchase, please reach out. The team at Greenway is happy to help!
𝐀 𝐍𝐢𝐠𝐡𝐭 𝐨𝐟 𝐂𝐨𝐦𝐩𝐚𝐬𝐬𝐢𝐨𝐧 𝐄𝐯𝐞𝐧𝐭
Over 270 people attended Halfway Home Animal Rescue Team's 𝐀 𝐍𝐢𝐠𝐡𝐭 𝐨𝐟 𝐂𝐨𝐦𝐩𝐚𝐬𝐬𝐢𝐨𝐧 𝐄𝐯𝐞𝐧𝐭 this year, with over 150 amazing prizes donated!
Greenway's President attented the even in Patterson, New Jersey on Thursday, November 10th. Greenway Mortgage was recognized for their generous contributions made in 2021 as we raised over $30k in just three short days to help animals in need.
𝐀 𝐦𝐞𝐬𝐬𝐚𝐠𝐞 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐇𝐚𝐥𝐟𝐰𝐚𝐲 𝐇𝐨𝐦𝐞 𝐑𝐞𝐬𝐜𝐮𝐞 𝐓𝐞𝐚𝐦:
“We are proud to say that all the delicious five-course dinner, even down to the butter and creamer on the tables was 100% vegan and cruelty-free, as was every single prize. We are very dedicated to our “be kind to every kind” policy, and no animals are ever harmed to help others.
𝗪𝗲 𝗵𝗼𝗻𝗼𝗿𝗲𝗱 𝘁𝗵𝗿𝗲𝗲 𝘃𝗲𝗿𝘆 𝘀𝗽𝗲𝗰𝗶𝗮𝗹 𝗽𝗲𝗼𝗽𝗹𝗲 𝘁𝗵𝗶𝘀 𝘆𝗲𝗮𝗿, 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝗰𝗲 𝘁𝗵𝗲𝘆 𝗵𝗮𝘃𝗲 𝗺𝗮𝗱𝗲 𝗶𝗻 𝘁𝗵𝗲 𝗿𝗲𝘀𝗰𝘂𝗲, 𝗮𝗻𝗱 𝘁𝗵𝗲 𝘄𝗼𝗿𝗹𝗱 𝗮𝗿𝗼𝘂𝗻𝗱 𝘁𝗵𝗲𝗺. 𝗝𝗮𝗺𝗲𝘀 𝗣𝗮𝘆𝗼𝗿 (𝗱𝗼 𝘆𝗼𝘂 𝗸𝗻𝗼𝘄 𝗵𝗶𝗺?) 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗶𝗻𝗰𝗿𝗲𝗱𝗶𝗯𝗹𝗲 𝗱𝗼𝗻𝗮𝘁𝗶𝗼𝗻 𝗺𝗮𝘁𝗰𝗵 𝗵𝗲 𝗮𝗻𝗱 𝗚𝗿𝗲𝗲𝗻𝘄𝗮𝘆 𝗵𝗮𝘃𝗲 𝗯𝗹𝗲𝘀𝘀𝗲𝗱 𝘂𝘀 𝘄𝗶𝘁𝗵 𝗲𝗮𝗰𝗵 𝘆𝗲𝗮𝗿.
This generous gift has not only raised much-needed funds to save countless animals but has raised awareness for rescue and has helped build a strong sense of community.
Craig & Pamela Goldman, who donated a house to the rescue, so they will always have a place to call home, and Xander Wittkamp, a young boy who helps his family foster special needs dogs was also honored.”
𝘿𝙪𝙚 𝙩𝙤 𝙩𝙝𝙚 𝙠𝙞𝙣𝙙𝙣𝙚𝙨𝙨 𝙖𝙣𝙙 𝙜𝙚𝙣𝙚𝙧𝙤𝙨𝙞𝙩𝙮 𝙤𝙛 𝙨𝙤 𝙢𝙖𝙣𝙮 𝙬𝙤𝙣𝙙𝙚𝙧𝙛𝙪𝙡 𝙥𝙚𝙤𝙥𝙡𝙚, 𝙤𝙫𝙚𝙧 40𝙠 𝙬𝙖𝙨 𝙧𝙖𝙞𝙨𝙚𝙙 𝙛𝙤𝙧 𝙩𝙝𝙚 𝙖𝙣𝙞𝙢𝙖𝙡𝙨!!
Greenway Gives Back
We believe in giving back. We donate 5% of our annual profits to local and regional environmental groups and causes. We are also active in the communities we lend in. Click here to learn more about Greenway’s Giving Back efforts.
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When interest rates were at historic lows, a typical fixed rate mortgage loan was all most people needed. Now, rates have risen. They’re still below long-term averages, yet appreciably higher than before. And of course, higher interest rates lead to higher monthly payments.
Here at Greenway Mortgage, we recognize the rising rate environment and how homeownership may feel out of reach for some. That’s why we now offer a 2-1 Buydown Program to help counteract the trend towards higher rates.
It’s what everyone’s talking about these days, a 2-1 Buydown. We’re sure you’ve probably heard of it, but you may not know exactly what it means. That’s where we come in.
What is a 2-1 Buydown Loan?
With a 2/1 Buydown, borrowers get a 30-year fixed rate loan with an interest rate that’s temporarily discounted 2% during the first year and 1% the second year by paying an upfront fee at closing. By the third year of the mortgage term, the interest rate reaches the original interest rate on the loan.
Borrowers can ease their way into a home with lower payments that simply step up at the end of the first and second year then remain fixed for the remainder of the loan. Here are the details:
Program Details:
- 1st Year: Interest rate starts at 2% under the locked rate
- 2nd Year: Interest rate is 1% below the locked rate.
- 3rd Year: Loan converts to the locked interest rate.
The Fine Print
- Borrower must qualify for full monthly payment (before buydown rate is applied).
- Third-party contributions are eligible.
- Eligibility requirements, exclusions and other terms and conditions apply.
Example of a 2-1 Buydown
Say you lock in a 5% interest rate, the 2-1 Buydown Program allows you to make monthly payments at a 3% interest rate for the entire first year of your mortgage.
Then, in year two, your payments would be based on a 4% interest rate.
Finally, once you hit year three and for the remaining life of your loan, your payments would reflect your originally-agreed-upon 5% interest rate.
What Types of Loans is a 2-1 Buydown Available For?
2-1 Buydowns are available on conforming fixed products.
- 30-year Fixed Rate Conforming Loans*
- Conventional Purchases | Primary: 1-4 Units, Second Home: 1 Unit
- Conventional Refis | Limited Cash-out
- HomeReady / HomePossible | Purchase Primary: 1 Unit
- FHA, VA, USDA | Purchase Primary: 1-4 Units
- FHA 2nd Home | 1 Unit
*High Balance available Conventional, HomeReady, HomePossible
Who Can Benefit From a 2-1 Buydown?
- Borrowers who may earn more within a few years of obtaining mortgage.
- Borrowers who want to use the savings to reduce bills/debt.
- Borrowers receiving contribution or gifts that will fund the buydown at closing.
How Can a Borrower Benefit from a Temporary Buydown?
- Borrowers will pay less money upfront on their monthly mortgage payments.
- It helps ease borrowers into making monthly payments and it saves you money during the first two years of homeownership.
- Lessens the burned on your wallet with any extra expenses typically associated with moving into a new house (furniture, paint, new appliances, etc.)
Why are we seeing the 2-1 Buydown Program now?
In an environment where interest rates are rising, the 2-1 buydown benefits home buyers by helping them ease into the full monthly payment. It’s especially appealing for first-time homebuyers who are having a hard time purchasing a home in a housing market like we’re seeing today.
Bottom Line
If you’re currently house hunting in this turbulent housing market and need to find solutions to lower your monthly payments, this is a program is worth exploring. The market is shifting, but while it’s influenced by high interest rates and high home prices, borrowers may benefit from a 2-1 buydown.
So, are you interested in purchasing a new home and like the idea of easing into your mortgage payments? Contact the team at Greenway Mortgage to get started.
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It would be amazing if all you needed to prep your home for fall was hang a wreath and light a bunch of pumpkin spice candles. While yes, those are a part of getting ready for the change of seasons, there are more important preparations that come with being a homeowner.
With that said, fall is the perfect season to tackle general home maintenance projects because the weather is generally dry and temperatures are moderate. Before you start your seasonal home maintenance checklist, examine both the interior and exterior of your home.
Most of these home maintenance items can be accomplished without the help of a professional, but it's always better to be safe and call for assistance if a home improvement project is beyond your abilities.
Tick these items off your list this season, and you can rest easy knowing that your home and yard are buttoned up and ready for winter.
Happy Fall from your friends at Greenway Mortgage!
It's always been a good idea, but lately, it's become even more important to get pre-approved before you start your home search.
Why should I be pre-approved for a mortgage loan?
In recent years, mortgage guidelines have been tightened. Documentation requirements have been expanded and followed more closely. A pre-approval gets you through the process and uncovers potential pitfalls long before you become obligated by a contract to purchase.
What advantages will I have once pre-approved?
You'll be certain about the price range that's best for you. You'll know how much cash you'll need to close, and you'll know your maximum monthly payment. Understanding your limits will help you negotiate with confidence. Plus, since sellers like a sure thing, you'll have an advantage over buyers who may not have been through the process.
How long is the pre-approval valid?
Your pre-approval is typically good for the "shelf life" of the documents used. These will include a credit report, pay stubs, bank statements, W2s, tax returns, etc. The usable life of these documents will vary, yet it's usually safe to say that your approval is good for up to three or four months. During this time, it pays to file all important financial documents so they're readily available for future updates.
What if I change my mind?
That's perfectly fine. There's no obligation to purchase a home or use a particular loan program once you've been pre-approved. In fact, pre-approval simply helps to assure you know exactly what's involved, that you are comfortable in a particular price range and that you are truly ready to make your move.
The process of purchasing a home is easier when you have financing in place before you make an offer. We're here to help get you started, and it's never too early to do exactly that.
Give us a call when you’re ready or click here to contact us.
