• Skip to primary navigation
  • Skip to main content
  • MORTGAGE
  • CAREERS
Ark Mortgage Inc, NMLS# 103915

Ark Mortgage Inc, NMLS# 103915

Mortgage Advisors & Lending Services in New York & New Jersey

  • About
    • Why Ark
    • Team
    • Reviews
    • Learn
      • Blog
      • Glossary
      • FAQ
      • Mortgage Calculators
    • Contact
    • Careers
  • Purchase
    • New Home Purchase
    • First-Time Homebuyer
    • Buying a Vacation Home
    • Home Buying Guide
    • Buying an Investment Property
  • Refinance
    • 2nd Lien Loan
    • Lower Your Payment
    • Pay Off Your Home Faster
    • Consolidate Your Debt
    • Get Cash From Your Home
    • Refinance Investment Property
  • Programs
    • Certified Pre-Approval
    • Heroes Program
    • Lifetime Guarantee
    • Multiple-Property Discount
    • Investor’s Loan
  • My Loan
  • My Application

Renting vs. Buying a Home

Renting and buying a home has its pros and cons. The right option for you will depend on your financial circumstances and goals.

Buying a home — like any real estate purchase — can be a great investment. But is it a good investment for you? That depends on a number of factors. First, ask yourself, does it make sense to purchase a home if you are already in a reasonable rental?

Can I afford a mortgage?

The fact is, if you are renting a home it’s likely you are already paying a mortgage — your landlord’s. You are also paying the landlord’s taxes and insurance, not to mention the profit the landlord draws from the rental. When you move out of that rental, you will have nothing to show for the money you’ve spent for the use of your landlord’s property. If the home goes up in value, you will receive no financial benefit.

Another thing: Renters are at the mercy of a landlord. If the landlord chooses to raise the rent at the renewal of your lease, you could face an increase that you’ll be unable to pay, even if the property you rent is subject to rent control or stabilization regulations. You could be forced to pack up your life and move.

Landlords also set the rules. You may not be able to have a pet, make structural changes, update appliances or even change paint color. Rules vary, but one thing is always true: you’re never free to do whatever you might want to do in your home.

But can you actually afford to buy, rather than rent?

You probably can. The truth is that, once you’ve saved up for a down payment and purchased your own home, your monthly costs might actually be lower than your rent. Remember, your landlord was likely charging you more than the actual cost of ownership. A good Advisor can help you devise a plan to start saving for a down payment. They can even help you find 0% down financing if you qualify.

Once you are the homeowner, you will still be paying the mortgage, taxes, insurance and upkeep, but the money you put into the home goes toward equity in ownership. And you’ll be the one to benefit if and when the property rises in value.

How much could I save?

A good Mortgage Advisor can help you determine how much you may be able to save if you become a homeowner instead of a renter. He or she will show you how the money you spend on home improvements may boost its value. Depending on how long you hold onto your home and which way the market goes, you could realize a healthy profit when and if you decide to sell.

If you expect to move frequently – maybe your job transfers you often, or you’re in the military – don’t necessarily rule out the idea of purchasing a home. While the costs of moving and financing may offset any profit you might realize from a quick resale, you might choose to rent out the property. Then you’ll become the landlord and profit from the rent and from an increase in property’s value when you ultimately sell. Then again, with the recent hot market, it doesn’t take long to see a profit from an investment in residential real estate.

Where should I buy?

If you are buying your own home, then your choice of location is determined by job, family and lifestyle choices. If New York is the place you need to be, then so be it. Hey, if you can make it there, you’ll make it anywhere. The fact that New York real estate can be more expensive than many other locations may factor into your decision to buy, but it certainly is only part of the decision.

If you are buying as an investment, you will need to do a careful analysis of market trends, potential return from rental income, cost of living, utilities, and much more. Most urban center prices are sky high, for example, but so are the rents. Again, a good Mortgage Advisor can help you determine what level of investment would be a smart move for your financial situation.

Once you’ve decided where you want to buy, make sure you work with your Mortgage Advisor to determine how much you can spend — before you go house hunting. It makes little sense to shop for a million-dollar penthouse if your budget is $400K. Your Advisor will be able to tell you what your “buying power” is, and will be able to get you pre-approved so that when you make an offer on a home, you’ll be taken seriously.

So, yes, by all means, buying a house is a great idea – as long as you are investing wisely.  Just make sure you get the right advice from people who do it all day long.

 

Sign up for blog updates.

Blog Update List

Yearnin’ for some mortgage learning? Sign up for e-mail updates.

First
Last
Enter Email

Posted: August 28, 2019 Last Modified: March 28, 2023Categories: Uncategorized

Explore more

About Us FAQ Call (833) 215-8500

Footer

Ark Mortgage, Inc. NMLS ID #103915

400 Rella Blvd Montebello, NY 10901
Serving New York, New Jersey, Connecticut, Pennsylvania, Florida, & Arizona
View our NMLS licenses here.

Equal Housing Lender

Copyright © 2023 · Ark Mortgage, All Rights Reserved.

  • Email
  • Facebook
  • Instagram
  • LinkedIn
Ark Mortgage, Inc. BBB accredited business profile
BBB RATING: A+
  • Terms of Use
  • Privacy Policy
  • NMLS Consumer Access
  • Disclosures and Licenses
Start Here:
I am looking to: *
logo required delete move drag clear noclear duplicate copy clone tooltip tooltip_solid forbid checkmark image checkmark circle checkmark square check check1 plus plus1 plus2 plus3 plus4 minus minus1 minus2 minus3 minus4 cancel cancel1 close report_problem_solid report_problem arrowup arrowup1 arrowup2 arrowup3 arrowup4 arrowup5 arrowup5_solid arrowup7 arrowup6 arrowdown arrowdown1 arrowdown2 arrowdown3 arrowdown4 arrowdown5 arrowdown5_solid arrowdown7 arrowdown6 arrow_left arrow_right filter download upload2 download2 hard_drive pencil_solid pencil signature register account_circle_solid account_circle address_card paragraph checkbox_unchecked checkbox checkbox_solid dropdown caret_square_down radio_unchecked scrubber location_solid location toggle_on toggle_off shield_check shield_check_solid clock clock_solid email_solid mail_bulk code tag tag_solid price_tags search sitemap file file_text_solid file_text option option_solid more_horiz more_vert more_horiz_solid more_vert_solid calculator key keyalt_solid keyalt keyboard eye eye_solid eye_slash_solid page_break view_day attach_file printer header h1 repeat repeater save sliders code_commit star star_full star_half linear_scale pie_chart stats_bars sms highrise mailchimp feed align_right align_left button browser cloud_upload_solid shuffle swap pallet fingerprint ghost heart_solid heart history import export label_solid label lock_open lock dollar_sign percent notification external_link pageview_solid pageview settings stamp support text white_label authorize activecampaign aweber campaignmonitor constant_contact getresponse googlesheets building hubspot icontact mailpoet paypal icon sendinblue sendy salesforce salesforcealt stripe stripealt twilio woocommerce wordpress credit_card credit_card_alt cc_amex cc_discover cc_mastercard cc_visa cc_paypal icon cc_stripe price product total quantity directory Zapier Preview
Name *
Name

THINKING ABOUT BUYING

I am looking for...
$
$
675
Approximate score is fine.

ACTIVELY HOUSE HUNTING

I am looking for...
$
$
675
Approximate score is fine.

CHOSE A PROPERTY

I am looking for... *
$
$
675
Approximate score is fine.

UNDER CONTRACT

I am looking for... *
$
S

INVESTMENT PROPERTY

Ark offers alternate ways to finance investment properties, including our DSCR loan where borrowers can qualify with the current rent roll of the property; and the Alt-Doc loan which uses P&L or bank statements to qualify.

Loan type desired
This property is *

Ark does not issue loans for properties with five or more units at this time.

$

REFINANCING

Intended use for the property *
Loan type desired
$
7%
2%12%
months
years
Find an Advisor
Contact Us (Investors)
First
Last