According to a recent Freddie Mac report, Orlando is the fifth most rent-burdened metro area in the United States. As cities throughout Central Florida share drastic rises in rent, tenants are questioning whether they should renew their leases or jump into homeownership. If you’re contemplating an upgrade from a lease to a home loan, here are a few great reasons to make the switch.
Stop Paying Someone Else and Start Building Equity
Instead of being locked into a lease that increases year after year making it hard to get ahead, consider locking in a low mortgage rate and putting your monthly payment towards an actual investment. As you pay down your mortgage, you are essentially paying yourself by building equity in your home. In fact, home equity is the largest asset for a majority of Americans.
Take Advantage of Relaxed Mortgage Guidelines
There are countless mortgage options to suit first time or repeat buyers. The two agencies that support most of the mortgages in the United States, Freddie Mac and Fannie Mae, have relaxed their guidelines in recent years, allowing for higher debt to income ratios. Additionally, both Freddie Mac and Fannie Mae now allow applicants to finance even more of their purchase price, up to 97%, which makes it a great time to purchase a home with very little money out of pocket.
High Rents, But Low Rates
Supply and demand is driving rent prices into historical highs, but the opposite is happening with mortgage rates for various reasons. Rates are at a nearly historical low for loans of all terms. Take advantage of this now before rates start going back up. An increase in a mortgage rate of even 1% could cause you to pay hundreds of dollars more each month on your loan.
Get Started on Mortgage Applications
If you’re ready to outsmart Central Florida rent, partner with the mortgage professionals at Butler Mortgage. Our team can walk you through a series of mortgage solutions until you select an option that fits your finances. For more information on your mortgage decision, complete our free consultation form or call 407-931-3800.