Buying vs. Renting
I’m looking at getting a mortgage. How much should I budget for my monthly payment?
- Housing costs vary from city to city and neighborhood to neighborhood, so using your current rent combined with the amount you’re saving for a down payment and your renter’s insurance is probably a good guide for how much you’ll be able to afford for a mortgage payment and homeowner’s insurance.
- Spending too much on your housing is a rough hole to dig out of, but it’s much easier when you own rather than renting. A recent Harvard study reported that nearly half of renters are “cost burdened” because their rent exceeded 30% of their income, while one in four renters pay more than half of their income for rent. With a mortgage, you gain flexibility by developing equity, but it’s still wise to avoid spending one-third or more of your income on your housing costs.
- If you choose an affordable place now, you can save money for a down payment on a bigger place down the road.
Visit ACU’s online mortgage center or stop by one of our many branches to find out about what kind of mortgage programs we offer. Whether you are a first time buyer or have purchased a home in the past ACU is here for your mortgage needs!