Shopping for Your First Home

More Articles:

*Is there a right way to find the right house for me?
*What's the best way to get the best deal?
*How important is it to improve my credit score?
*Should I rent or buy?
*What's the difference between pre-qualifying and pre-approval?
*How much should I put down?

Should I rent or buy?

Buying isn't for everyone. It's a long-term financial and emotional commitment that shouldn't be jumped into without serious consideration. If it’s an investment you’re after, consider putting your dollars in other financial instruments with a better likelihood of paying off. While it’s true there are tax advantages*, they only come into play if you itemize your deductions. (Always consult your tax advisor regarding the deductibility of interest.) How to tell if you’ll benefit from buying? In the end, you have to put your pencil to paper (or get out your calculator) to see how much you can put down on a house and how much ownership will cost each month at current interest rates over the next 15 or 30 years. Then look at how much you would spend each month for that same period if you were renting, with minor annual increases. However, there may be other considerations that cause renting to make more sense for you.