This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

What Would You Give Up to Buy Your Dream Home?

With soaring demand pushing rents to an all-time high, homebuying is looking more attractive these days. According to the Mortgage Bankers Association, the average rate on a 30-year fixed-rate mortgage fell to a record-low 3.72% for the week ending Sept. 14, down from 3.75% the previous week.

"Now could be a great time to buy and lock in your housing costs," says Jessie Foster, financial planner at Raskin Planning Group. "If you are in an area where the rental market is booming, you will most likely see your rent increase each year."

To determine if you can afford to buy your dream home, use this rent vs. buy calculator. This tool would show you the fees, taxes and monthly payments to compare with your current rent. Use this mortgage loan calculator to see how much interest you could pay and your estimated principal balances.


"Another cautionary element here is folks buying more house than they can afford with an adjustable-rate mortgage. Interest rates may move much higher in the longer term, pricing some people out of the homes that seem more affordable now," Kaplan warns.

If you truly know that you can afford to buy that dream home, Howard says, go for it. But prepare to make lifestyle changes for the unexpected expenses that come with homeownership.

Just don't touch that 401(k), Kaplan says. "No home is worth jeopardizing future funding goals."

-- Written by Marilen Cawad in New York.

>To contact the writer of this article, click here: Marilen Cawad.

>To follow the writer on Twitter, go to http://twitter.com/marilencawad.

>To submit a news tip, send an email to: tips@thestreet.com.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs