In many cities, rent expenses are growing faster than actual home prices. It’s becoming cheaper to own than to rent, and people are realizing it. However, to buy a home, you do need to have some money to your name for a down payment, which is why less people are switching over. But, there are ways to buy a home with a small down payment (or even none at all!) For the pros and cons of buying a home with a smaller down payment, check out this post by Kyle Hiscock at the Rochester Real Estate Blog:
Pros:
-It lets you buy a home when you have good credit/job history, but no saved money.
-It won’t drain your savings account
Cons:
-Lack of immediate equity- you’ll need to stay in that home for more than 5 years before moving.
-Mortgage insurance required
-Higher interest rates
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