Renting vs. buying in the current market

22News examines which option could save you money

WEST SPRINGFIELD, Mass. (WWLP) –  Buying your first house can be a frightening experience, especially for young adults.

However real estate experts say in the current market, buying is a great option, especially compared to renting. Over the past year, rent rates have gone up 4%. Kelley & Katzer Real Estate in West Springfield said there’s actually a good chance you’d save money every month paying a mortgage instead of rent.

“There’s a lot of down payment assistance programs out there that are a lot lower than people expect. People think you’ve got to put 20% down on a house,” said Joe Kelley, the real estate agency’s co-owner. “The interest rates are so low you’d almost be paying as much as you’re paying in rent if not less.”

Kelley said in many cases, down payments can be as low as 3%. That means you’d only need to put down $3,000 to buy a $100,000 home. Compare that with first and last months rent, on top of a security deposit, and you could actually save money.

Additionally, when looking at mortgage interest rates, Kelley said right now they’re as low as 3%-4%.  He said in the past, mortgage rates have skyrocketed to the 18% range.

Kelley told 22News this is another reason residents, including young adults, should consider buying instead of renting. To learn if you’re a good candidate to become a homeowner, Kelley & Katzer recommend visiting your local bank who can go over your credit score, equity and rates for a mortgage.

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