Is buying still worth more than renting?

Currently my fiance and I are renting in Orlando and are looking into buying our first home since rent prices keep going up each year at a staggering rate and we’re at the point where we can start to afford to own something. At our current rate of saving if we release our apartment and waited a year we would have enough for a 15-18% down payment. Here are our options we’ve thought up:

Option #1:

If we are to buy a home right now we’ll only be able to afford a 3-5% down payment. Not optimal but we can certainly afford the estimated monthly payments. Then within 1-2 years we would recast our mortgage with a lump sum of savings that would put us at 16-20% equity in the home and lower the monthly payment some more.

Option #2:

We hold off on buying now and release to our apartment for one more year to build capitol. Next year we buy a home with a 15-18% down payment.

Conclusions:

What is everyone’s thoughts on this? My fiance and I have our heads spinning thinking about this. We don’t want to burn our money anymore to rent but also are fearful of getting burned in this market by waiting an extra year. Option #1 seems like a good in-between where we can own something now and lower the monthly cost even further after recasting.

The price we’re paying in rent right now is $2000/month. The mortgage we’d be looking at with 3% down would be about $2853

submitted by /u/frankles12
[link] [comments]

Currently my fiance and I are renting in Orlando and are looking into buying our first home since rent prices keep going up each year at a staggering rate and we’re at the point where we can start to afford to own something. At our current rate of saving if we release our apartment and waited a year we would have enough for a 15-18% down payment. Here are our options we’ve thought up: Option #1: If we are to buy a home right now we’ll only be able to afford a 3-5% down payment. Not optimal but we can certainly afford the estimated monthly payments. Then within 1-2 years we would recast our mortgage with a lump sum of savings that would put us at 16-20% equity in the home and lower the monthly payment some more. Option #2: We hold off on buying now and release to our apartment for one more year to build capitol. Next year we buy a home with a 15-18% down payment. Conclusions: What is everyone’s thoughts on this? My fiance and I have our heads spinning thinking about this. We don’t want to burn our money anymore to rent but also are fearful of getting burned in this market by waiting an extra year. Option #1 seems like a good in-between where we can own something now and lower the monthly cost even further after recasting. The price we’re paying in rent right now is $2000/month. The mortgage we’d be looking at with 3% down would be about $2853 submitted by /u/frankles12 [link] [comments]

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