Comparing houses prices to rent payments, determine if you should buy or rent, how much does it cost to rent a house in Denver compared to buying a house, how much is the average monthly mortgage payment in Denver CO. How much do I have to make to afford a certain amount for a down payment on a home? What should my DTI ratio be? Should I have two jobs before applying for a mortgage loan to prove stability?
It’s renting season in Denver, which means that many people are considering renting vs. buying a house. Before you commit to renting again or finally take the plunge into homeownership, consider your monthly budget and long-term plans.
Before you make any decisions regarding renting vs buying, it’s important to know exactly what both options entail. When renting, you typically pay rent every month for the amount of time stated in your lease agreement. That money goes towards covering the landlord’s mortgage bill as well as any other expenses may have for the property.
In renting, renting means one has no long-term commitment. It takes only 30 days to terminate your lease agreement. On the other hand, when you buy a house, it’s more of an investment, because you’re essentially buying or renting space where you can store your belongings and call home. To make this decision even more complicated is the fact that there are various types of home loans available on the market today. So how do you decide which option is right for renting vs buying?
First, you need to figure out how much money you’re able to save each month.
If you’ve decided that buying is right for renting vs buying, then the next step would be to sit down and run the numbers with an experienced mortgage professional. The best way to do this is using your monthly income, which lenders will refer to as the “debt-to-income ratio” (or DTI). Once it’s determined how much you can give towards a down payment, closing costs, taxes, and fees on top of your actual monthly home payments, you’ll get a better idea of whether it’s worth renting or buying.
Another factor one should consider when renting vs buying is their job situation. If your career path doesn’t guarantee that you’ll be staying in Denver indefinitely, renting might make more sense. The only way to be sure they’ll be able to afford their monthly mortgage is to secure a job before buying. If you can’t do that, then renting may be the better option.
When deciding between renting or buying, consider what kind of shelter is right for your budget and long-term plans. For many, it’s a financially responsible decision to rent vs buying, but the only way that you’ll know for sure is by crunching some numbers.
Once you’ve decided which option is right for you, consider signing a year lease for your home. Some homeowners will give a discount on the home in exchange for a year’s commitment, which can help you save money at the end of the lease agreement.
Contact High Ridge Realty at (720) 664-7864, if you’re making a move.