![\"should](\"https:\/\/dlzx9e7gl8jc4.cloudfront.net\/trulia\/wp-content\/uploads\/sites\/1\/2016\/05\/should-i-buy-a-house-86ac10.jpg\")
<\/p>\nYour decision to buy a home should be based on your financial well-being, not the housing market.<\/h2>\n\n\n\nThe scenario: Your landlord keeps hiking up your rent, and you\u2019re tired of reworking your budget to accommodate the other areas of your life\u2014or worse, searching for a new rental. You want to invest in a home for sale in Charleston, SC<\/a>, or Seattle, WA<\/a>, but you\u2019re not sure if now is the right time, so you start asking yourself the question: Should\u00a0I buy a house?<\/p>\nDeciding if\u00a0you should rent or buy<\/a> can be determined in part by your commitment to an area\u2014you could have legitimate concerns about job relocation or you may wonder if the space you can afford now will be flexible enough that you won\u2019t grow out of it just a few years down the road. And on an economic level, perhaps you\u2019re not sure you can afford all the costs that a down payment, mortgage, and home maintenance entail. Here are some questions to consider.<\/p>\nShould you buy before home prices climb higher?<\/strong><\/h3>\nIn most parts of the U.S., home prices have been climbing steadily for the past few years. Does this mean you should rush to lock in the current prices before they rise even higher? The best answer: not necessarily. Do what\u2019s right for you. If you\u2019re planning to stay in one spot for a decade or more, short-term fluctuations in the house\u2019s underlying value shouldn\u2019t make a difference. After all, the primary purpose of a home is to provide a place to live, coupled with an opportunity to grow equity over time. Don\u2019t overanalyze the market when deciding to buy a house. If the time is right for you, there\u2019s no reason to wait.<\/p>\n
Do you have a 20 percent down payment?<\/strong><\/h3>\nOne of the major factors in determining if the time is right to buy a house: whether you have the finances to purchase one. Many lenders require a 20 percent down payment before they\u2019ll grant you a mortgage<\/a>. If you can\u2019t come up with such a hefty down payment, it\u2019s possible to secure a loan, but you\u2019ll probably have to pay private mortgage insurance, or PMI<\/a>, to make up the difference.<\/p>\nPMI rates vary from lender to lender but generally cost 0.05 percent to 1 percent of the total loan amount. At 0.05 percent, you\u2019ll pay $41.50 per month for every $100,000 worth of loan that you carry. If you\u2019re holding an FHA-insured loan, you pay two different mortgage insurance premiums<\/a>. The upfront premium is 1.75 percent of your loan size, and it will be added to your borrowed amount (thus increasing your monthly costs). You\u2019ll also pay a second premium, which is assessed annually and billed monthly. This second fee, often known as monthly mortgage insurance, will cost 1.3 percent annually if you carry a 30-year mortgage and put down at least 5 percent.<\/p>\nThe bottom line? Not having a 20 percent down payment<\/a> on hand can be a very expensive proposition. If you borrow $200,000, for example, and you\u2019re charged 1% PMI, you\u2019ll hand over $166 per month \u2014 not an insignificant sum.<\/p>\nCan you budget for recurring monthly expenses?<\/strong><\/h3>\nYour mortgage payment<\/a> is the heftiest of all monthly payments. It comprises four items: principal, interest, taxes, and insurance. (Together, these are known as PITI.) If you have a fixed-rate mortgage<\/a>, your principal<\/em> and interest<\/em> will remain a flat monthly fee, regardless of what\u2019s happening in the overall economy. However, your taxes and insurance may change, so even with a fixed-rate mortgage, your payment could fluctuate. Taxes are set by your county government and are based on its assessment of your property, so this expense is subject to increase at any point\u2014either if your county reassesses your home at a higher value or if your local government decides to boost its tax rates.<\/p>\nAsk yourself: Do you have the space in your budget to accommodate that type of tax increase? If your budget is so tight that this will cause you to miss payments, you\u2019re probably not in a strong enough position (right now) to buy a home. Likewise, you might decide to buy a home in a community that\u2019s governed by a homeowners\u2019 association<\/a>, or HOA. This HOA can assess mandatory \u201cdues\u201d and put a lien on your house if you don\u2019t pay the bill. And the HOA can decide to raise its dues at any point. Do you have enough wiggle room in your budget to accommodate a fee hike?<\/p>\nDo you have savings for maintenance and repairs?<\/strong><\/h3>\nYour mortgage isn\u2019t the only housing expense you\u2019ll need to meet in your budget. When you move from a rental to a home, you have new responsibilities (and the related costs), such as cleaning the gutters<\/a>, replacing or repairing the roof, fixing and maintaining the HVAC, refinishing the floors, hiring a plumber, installing a new dishwasher, and repairing a broken garbage disposal.<\/p>\nAs a very broad rule of thumb, you should budget 1 percent of the home\u2019s purchase price annually for repairs and maintenance. For example: If your home is worth $300,000, set aside $3,000 per year, or $250 per month. You probably won\u2019t spend this amount each month. Some months, you\u2019ll spend zero. But another month, you may need to replace every window in your home\u2014and could rack up a $7,500 bill.<\/p>\n
How long will you stay in your home?<\/strong><\/h3>\nBuying and selling a home incurs thousands in closing costs\u2014including inspections, title insurance, transfer tax, attorney fees, and real estate commissions. If you\u2019re going to hold on to your home for several years, those costs will spread themselves out over time. But if you might be selling your home after two or three years, those costs (in addition to property taxes, homeowners insurance, mortgage interest, and maintenance) might add up to more than what you would have paid in rent.<\/p>\n
<\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n
![\"Empire](\"https:\/\/empireappraisalgroup.com\/wp-content\/uploads\/2014\/04\/best-South-Florida-appraiser-300x73.jpg\")
<\/a><\/p>\nAbout Empire Apprais<\/em>al Group, Inc.<\/em><\/p>\nEstablish in 2005, Empire Appraisal Group, Inc., is Broward County\u2019s\u00a0leading residential appraisal company as a result of their accurate and reliable appraisals, excellent customer service, and quick turn times.\u00a0 When working with an appraiser, integrity and professionalism are essential, and Empire Appraisal Group has a well-established reputation for providing the best appraisal experience.\u00a0 Daniel Lindeman, the Chief Appraiser, is considered one of the top property appraisers in Florida, with nearly 15 years of expertise and\u00a07,000+ appraisals to his credit.<\/em><\/p>\nWe\u00a0\u2018specialize\u2019 in helping people who need appraisals for estate purposes, divorce, bankruptcy, FSBO\u2019s and more.<\/em><\/p>\nWe also work closely with realtors\u00a0to help establish listing prices, these pre-listing appraisals ensures sellers\u00a0get\u00a0top dollar for their home.<\/em><\/p>\nIn addition, to homes of all shapes and sizes, we also appraise condos, multifamily homes, boat docks, land, as well as\u00a0specialty properties. No job is too big or too small, from manufactured homes to mansions.<\/em><\/p>\nCall Empire Appraisal Group directly with any questions concerning your real estate values at 561-441-9298. \u00a0Also, check out our \u2018Reviews<\/a>\u2019 page and see what others are saying about Daniel Lindeman and Empire Appraisal Group, Inc.<\/em><\/p>\nWe provide residential appraisal services to all cities in Broward County:\u00a0 Parkland<\/a>, Coral Springs<\/a>,\u00a0Coconut Creek<\/a>, Dania Beach, Cooper City<\/a>, Davie<\/a>, Deerfield Beach<\/a>, Fort Lauderdale<\/a>, Sunrise<\/a>, Hallandale Beach, Hillsboro Beach, Hollywood<\/a>, Lauderdale by the Sea,\u00a0Lauderdale Lakes, Lauderhill, Lighthouse Point<\/a>, Margate<\/a>, Miramar, North Lauderdale, Oakland Park, Pembroke Pines, Plantation, Pompano Beach<\/a>, Sea Ranch Lakes, Tamarac<\/a>, Weston<\/a>, Wilton Manors.
The scenario: Your landlord keeps hiking up your rent, and you\u2019re tired of reworking your budget to accommodate the other areas of your life\u2014or worse, searching for a new rental. You want to invest in a home for sale in Charleston, SC<\/a>, or Seattle, WA<\/a>, but you\u2019re not sure if now is the right time, so you start asking yourself the question: Should\u00a0I buy a house?<\/p>\n Deciding if\u00a0you should rent or buy<\/a> can be determined in part by your commitment to an area\u2014you could have legitimate concerns about job relocation or you may wonder if the space you can afford now will be flexible enough that you won\u2019t grow out of it just a few years down the road. And on an economic level, perhaps you\u2019re not sure you can afford all the costs that a down payment, mortgage, and home maintenance entail. Here are some questions to consider.<\/p>\n In most parts of the U.S., home prices have been climbing steadily for the past few years. Does this mean you should rush to lock in the current prices before they rise even higher? The best answer: not necessarily. Do what\u2019s right for you. If you\u2019re planning to stay in one spot for a decade or more, short-term fluctuations in the house\u2019s underlying value shouldn\u2019t make a difference. After all, the primary purpose of a home is to provide a place to live, coupled with an opportunity to grow equity over time. Don\u2019t overanalyze the market when deciding to buy a house. If the time is right for you, there\u2019s no reason to wait.<\/p>\n One of the major factors in determining if the time is right to buy a house: whether you have the finances to purchase one. Many lenders require a 20 percent down payment before they\u2019ll grant you a mortgage<\/a>. If you can\u2019t come up with such a hefty down payment, it\u2019s possible to secure a loan, but you\u2019ll probably have to pay private mortgage insurance, or PMI<\/a>, to make up the difference.<\/p>\n PMI rates vary from lender to lender but generally cost 0.05 percent to 1 percent of the total loan amount. At 0.05 percent, you\u2019ll pay $41.50 per month for every $100,000 worth of loan that you carry. If you\u2019re holding an FHA-insured loan, you pay two different mortgage insurance premiums<\/a>. The upfront premium is 1.75 percent of your loan size, and it will be added to your borrowed amount (thus increasing your monthly costs). You\u2019ll also pay a second premium, which is assessed annually and billed monthly. This second fee, often known as monthly mortgage insurance, will cost 1.3 percent annually if you carry a 30-year mortgage and put down at least 5 percent.<\/p>\n The bottom line? Not having a 20 percent down payment<\/a> on hand can be a very expensive proposition. If you borrow $200,000, for example, and you\u2019re charged 1% PMI, you\u2019ll hand over $166 per month \u2014 not an insignificant sum.<\/p>\n Your mortgage payment<\/a> is the heftiest of all monthly payments. It comprises four items: principal, interest, taxes, and insurance. (Together, these are known as PITI.) If you have a fixed-rate mortgage<\/a>, your principal<\/em> and interest<\/em> will remain a flat monthly fee, regardless of what\u2019s happening in the overall economy. However, your taxes and insurance may change, so even with a fixed-rate mortgage, your payment could fluctuate. Taxes are set by your county government and are based on its assessment of your property, so this expense is subject to increase at any point\u2014either if your county reassesses your home at a higher value or if your local government decides to boost its tax rates.<\/p>\n Ask yourself: Do you have the space in your budget to accommodate that type of tax increase? If your budget is so tight that this will cause you to miss payments, you\u2019re probably not in a strong enough position (right now) to buy a home. Likewise, you might decide to buy a home in a community that\u2019s governed by a homeowners\u2019 association<\/a>, or HOA. This HOA can assess mandatory \u201cdues\u201d and put a lien on your house if you don\u2019t pay the bill. And the HOA can decide to raise its dues at any point. Do you have enough wiggle room in your budget to accommodate a fee hike?<\/p>\n Your mortgage isn\u2019t the only housing expense you\u2019ll need to meet in your budget. When you move from a rental to a home, you have new responsibilities (and the related costs), such as cleaning the gutters<\/a>, replacing or repairing the roof, fixing and maintaining the HVAC, refinishing the floors, hiring a plumber, installing a new dishwasher, and repairing a broken garbage disposal.<\/p>\n As a very broad rule of thumb, you should budget 1 percent of the home\u2019s purchase price annually for repairs and maintenance. For example: If your home is worth $300,000, set aside $3,000 per year, or $250 per month. You probably won\u2019t spend this amount each month. Some months, you\u2019ll spend zero. But another month, you may need to replace every window in your home\u2014and could rack up a $7,500 bill.<\/p>\n Buying and selling a home incurs thousands in closing costs\u2014including inspections, title insurance, transfer tax, attorney fees, and real estate commissions. If you\u2019re going to hold on to your home for several years, those costs will spread themselves out over time. But if you might be selling your home after two or three years, those costs (in addition to property taxes, homeowners insurance, mortgage interest, and maintenance) might add up to more than what you would have paid in rent.<\/p>\n <\/p>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n About Empire Apprais<\/em>al Group, Inc.<\/em><\/p>\n Establish in 2005, Empire Appraisal Group, Inc., is Broward County\u2019s\u00a0leading residential appraisal company as a result of their accurate and reliable appraisals, excellent customer service, and quick turn times.\u00a0 When working with an appraiser, integrity and professionalism are essential, and Empire Appraisal Group has a well-established reputation for providing the best appraisal experience.\u00a0 Daniel Lindeman, the Chief Appraiser, is considered one of the top property appraisers in Florida, with nearly 15 years of expertise and\u00a07,000+ appraisals to his credit.<\/em><\/p>\n We\u00a0\u2018specialize\u2019 in helping people who need appraisals for estate purposes, divorce, bankruptcy, FSBO\u2019s and more.<\/em><\/p>\n We also work closely with realtors\u00a0to help establish listing prices, these pre-listing appraisals ensures sellers\u00a0get\u00a0top dollar for their home.<\/em><\/p>\n In addition, to homes of all shapes and sizes, we also appraise condos, multifamily homes, boat docks, land, as well as\u00a0specialty properties. No job is too big or too small, from manufactured homes to mansions.<\/em><\/p>\n Call Empire Appraisal Group directly with any questions concerning your real estate values at 561-441-9298. \u00a0Also, check out our \u2018Reviews<\/a>\u2019 page and see what others are saying about Daniel Lindeman and Empire Appraisal Group, Inc.<\/em><\/p>\n We provide residential appraisal services to all cities in Broward County:\u00a0 Parkland<\/a>, Coral Springs<\/a>,\u00a0Coconut Creek<\/a>, Dania Beach, Cooper City<\/a>, Davie<\/a>, Deerfield Beach<\/a>, Fort Lauderdale<\/a>, Sunrise<\/a>, Hallandale Beach, Hillsboro Beach, Hollywood<\/a>, Lauderdale by the Sea,\u00a0Lauderdale Lakes, Lauderhill, Lighthouse Point<\/a>, Margate<\/a>, Miramar, North Lauderdale, Oakland Park, Pembroke Pines, Plantation, Pompano Beach<\/a>, Sea Ranch Lakes, Tamarac<\/a>, Weston<\/a>, Wilton Manors.Should you buy before home prices climb higher?<\/strong><\/h3>\n
Do you have a 20 percent down payment?<\/strong><\/h3>\n
Can you budget for recurring monthly expenses?<\/strong><\/h3>\n
Do you have savings for maintenance and repairs?<\/strong><\/h3>\n
How long will you stay in your home?<\/strong><\/h3>\n
<\/a><\/p>\n