Should We Buy a Home or Should We Rent?

Answer: This typically depends on a number of factors listed below:

• Individual credit rating or if married, family credit rating
• Amount of income earned - individual or joint
• Amount that can be afforded towards homeowner expenses

Buying a home is considered an investment depending on individual or joint Mortgage Debt Ratio (front end ratio) and Total Debt Ratio (back end ratio).

The Mortgage Debt Ratio (MDR) can be defined as the percentage of a borrower's gross monthly income that is required to meet monthly housing expenses. In general, the (MDR) must not exceed 28% of a conventional loan.

The Total Debt Ratio (TDR) can be defined as the percentage of a borrower's gross monthly income that is required to meet monthly contractual expenses. In general, the (TDR) must not exceed 36% of a conventional loan.

When you rent, the individual or family writes a monthly rent check and that money is gone forever.

When you buy, the individual or family can deduct the cost of their mortgage loan interest from their federal income taxes, and usually state taxes.

This can save a substantial amount of money each year, because the interest the individual or family pays will make up most of the monthly payment for most of the years of the mortgage. 

In addition, the property taxes paid as a homeowner can also be deducted, as well as an appreciation in the value of the home over the years.

Do I Use a Real Estate Broker? 

Answer: Using a real estate broker is a very good idea. All the details involved in home buying, most importantly the financial ones, can be mind-boggling. At Henderson Management & Real Estate we can guide you through the entire process and make the experience much easier. We are well-acquainted with all the important things you'll want to know about a neighborhood you may be considering, the quality of schools, the number of children in the area, the safety of the neighborhood, traffic volume, and much more.

View our helpful real estate/community links for any specific neighborhood.

We will help you figure the price range you can afford and search for homes you'll want to see. Given immediate access to homes as soon as they're put on the market, Henderson Management & Real Estate can save you hours of wasted driving-around time.

After the offer and acceptance on a home of your choice, we can point out ways to structure your deal to save you money, explain the advantages and disadvantages of different types of mortgages, guide you through the paperwork, and be there to answer your last-minute questions when you sign the final papers at closing.