The Financial Circles

In financial circles, the “rent versus buy” argument is bigger than “paper versus plastic” or “Apple versus PC.” Owning a house is like passing some special, invisible barrier into actual adulthood. It’s permanent, it reeks of fiscal responsibility, and it makes us feel a little bit more like functional adults. And despite the economy, it’s good financial sense too. It’s a big decision, so it’s understandable to be wary of leaping into a commitment that large. Here are just a few reasons why it makes better financial sense to buy outright than rent for the rest of your life. Mortgage Rates Are Cheap During the recession, the rate on home loans dropped low – like, super low. On average for a thirty year fixed rate loan you were looking at about 4%, and now that the economy is in recover the rates haven’t risen very high. It won’t last forever though, making now a great time to buy. Once the rates go up, you’re already […]