Buy or Rent A Home?

Should I Buy
or Rent?

For generations, we have been taught that owning a home is the bedrock of the American Dream. However, just like anything else in life, there are pros and cons. When considering purchasing a home, you should ask yourself the following questions:

  • What is my overall life plan? 
  • Where do I want or need to live to maintain both my livelihood and lifestyle? 
  • Do I have children or do I plan to shortly?  
  • How important are schools? 
  • Do I want to build equity or continue renting to have more flexibility? 
  • Is commuting to work a consideration? 
  • Do I have enough money for the downpayment? 
  • Am I willing to deal with maintenance on the property?  
  • What is the best return on the investment? 
  • Can I get a good rate on a home purchase? 
  • Will I be able to make mortgage payments in the future? 
  • How comfortable am I with all my financial obligations? 
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Want To Chat With A Pro About This?

At Opportune, Inc., when you start your home planning process, we recommend consulting with a team that has decades of experience in the industry. If you live Chicago, greater Chicagoland, or anywhere in Illinois, you should work with a trusted local lender that can help you make the best decision.

Example Of Buying Vs. Renting A Home

You should be able to make a decision based on answers to the above questions. If your plan includes the desire to remain in a purchased home for longer than a few years, it may make sense to buy rather than continue renting. If, however, you plan on selling that home within 3-4 years of buying, it does not make sense to purchase at this time. Let’s take a look at the following example based on today’s housing trends, to illustrate this point:

Let’s assume you are looking for a 2 bedroom property in a northern Chicago suburb. The building is modern or updated with decent amenities and proximity to shopping, schools, and parks. To rent this type of property, it will cost about $1,500 per month. So, what will it cost to own if your down payment is only 10%, assuming today’s interest rate is 3%? The purchase price of this condo property is $175,000. Now let’s assess the breakdown:

  • Principal and interest (based on a mortgage loan of $157,500 after the down payment) = $665 per month
  • Taxes = $300 per month 
  • Assessment = $400 per month 
  • Private Mortgage Insurance = $70 per month 
  • Homeowner’s insurance = $30 per month 
  • Total Monthly Payment = $1,465 per month

What's The Better Decision?

You will pay slightly less per month if you own, and best of all is that there is a chance your property appreciate over time so you will be building equity. Where when you rent, someone else is maintaining a property, but you don’t own the place and your money is paying someone else’s mortgage loan and reaping the benefits of appreciation.  

Have Questions About Buying Vs. Renting A Home?​

Contact us for additional tips for refinancing your home.

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I cannot sing their praises enough! Through Eugene's ingenuity and never-give-up attitude, he found creative solutions to help us obtain our first mortgage when every other loan officer we'd worked with prior, had failed to deliver. Now, we're on the second go around with Opportune, having just refinanced and couldn't be happier with the smooth process and amazing rate Eugene was able to secure for us. We love the team here -- responsive, caring and professional. We'll never go anywhere else for our financing needs and neither should you!
Tiffany Gabbay
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Loved working with Barb at Opportune throughout our mortgage process. She was careful to point out various details we may have missed as 1st time home buyers, connected us with appropriate lenders quickly and was with us every step of the way. Happy to report that we now have our own house, due to in no small part Barb and team. Kudos and thank you!
Arka Pattanayak
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It's no wonder there are only 5 star reviews here. I worked with Barb Patterson and she was absolutely fantastic!! As someone entering the home buying process with absolutely no idea of how much I could even afford she walked me through every step and fought for me to get the best possible deal. My closing team commented that the loan cleared faster than they've ever seen because of how well Barb handled everything. Cant recommend her enough!
Deanna Brackman
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