For Rent in Broomfield>Question Details

circleyeeacr…, Home Buyer in Broomfield, CO

Rent or Rent to Own ? with increase rate in mortgages..rent to own would seem more risker.

Asked by circleyeeacres, Broomfield, CO Sun Jul 21, 2013

Looking for rental or rent to own option in Broomfield, prefer the Brandywine neighborhood..staying in school district for Westlake Middle and Legacy

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As others have said, buying is your best option. Rents are going up, interest rates are going up, values going up.... Rent to own is NOT a good option for a buyer. For one, it rarely works in favor of the buyer. Especially now. Years ago when it was more of a Buyer's Market (instead of the Seller's Market) that we're in), many desperate Sellers offered Rent to Own for those buyers who couldn't qualify for a regular mortgage. Now, it's not a problem for sellers to find normal buyers. I would talk to a lender and see what you need to do in order to qualify for a mortgage. I have a few great local lenders I'd be happy to refer you to.
0 votes Thank Flag Link Mon Jul 22, 2013
Thank you..my fear is we would not qualify for a mortgage. However, I do see your point about buying as a better option.
Flag Mon Jul 22, 2013
Circleyeacres,

In most situations it better to purchase than to rent. Not only are you paying someone else's mortgage rather than your own, you have no say so in rental rate increases and are subject to someone else's rules. You also get no tax advantages or appreciation on the place you are living. I wrote an article about here that explains it more - http://j.mp/RWrZi3 . If you would like to speak with a lender and determine your options, contact me.

Robert McGuire ASR
Broker/Consultant
Your Castle Real Estate
Direct - 303-669-1246
http://about.me/robertmcguire33
0 votes Thank Flag Link Sun Jul 21, 2013
If you can, I suggest buying now. Interest rates, rental rates, and home prices are all forecast to increase.

Did you know that a 1% increase in mortgages rates is equal to a 10% increase in the price of the home for the purpose of you payment?

Rent to own usually requires a substantial "non refundable" down payment.

Dan

303 570 5579
0 votes Thank Flag Link Sun Jul 21, 2013
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