So many people in different life situations are trying to decide if they should rent or own. Unfortunately, there is often no “right” answer. The decision is always a personal one and the right decision depends on your personal situation. But, we recently came upon this question that was asked in “Smart Money,” so we thought we would share the answer.
Q. My husband and I want to purchase a home. My husband is a graduate student working full time.
We have a choice of either renting or buying and we are leaning toward purchasing because it will take several years to finish his degree. I would like to purchase a home so we can do alterations for our children, and we may not be able to do that in a rented home.
Also, we must decide whether to take a fixed-rate mortgage or, as a mortgage broker keeps pushing, an adjustable-rate mortgage. She seems to think we would be far better off with an adjustable rate because we are buying for the short term. What do you think?
A. You are in a difficult period in life and complicating it by buying a new home at this point, in my opinion, is a mistake. At least when you are renting, you can forecast to some degree when you are going to leave, and you have no other responsibility except to look for a place at your next location.
As to the fixed-rate or adjustable-rate mortgage, rarely is an adjustable-rate mortgage recommend. All that does is delay paying off the house. In the days when the value of a house “always” went up, maybe an adjustable mortgage would have had some merit, but those days are behind us, at least for the time being.
You would most likely be better off to rent, although the decision is a personal one. Hopefully, you can find a home you can adjust to your needs. After graduation is the time for buying.
For information on renting an apartment in Glen Allen, Va, contact The Gardens.
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