How to decide whether to rent or buy a home - AmericaNowNews.com

To rent, or to buy?

It seems that every day more and more of us are waking up from the "American dream" of owning our own home.

According to numbers from the feds, the percentage of Americans who own a home dropped to 65.9 percent last year - the lowest it's been since early 1998.

And according to the people at Morgan Stanley, once you pull mortgage delinquencies out of the mix, the home ownership rate drops to just 59.2 percent.

They blame falling home prices, limited mortgage credit and better rental options for the change in where we live.

So how do you decide if it's better for you to rent or buy?

Nathan Bachrach says to "look at your credit report first. If it's a mess and your score is much below 700, you're going to have a hard time getting a good interest rate. You're probably better off renting while you build your credit back up."

He also recommends that you think long and hard about how long you think you'll actually be in that house.  Anything less than five years and there's a good chance you'll lose money after you factor in your closing costs and all the fees.

Copyright 2012 America Now. All rights reserved.

  • Most Popular StoriesMost Popular StoriesMore>>

  • Fugitive Friday: Central Virginia's Most Wanted

    Fugitive Friday: Central Virginia's Most Wanted

    Friday, August 15 2014 12:22 PM EDT2014-08-15 16:22:58 GMT
    Fugitive Fridays tracks down Central Virginia's most wanted. Take a look at the photos and see if you can help police track down these suspects.
    Fugitive Friday helps track down Central Virginia's Most Wanted.
  • Physicians warn against giving melatonin to children

    Physicians warn against giving melatonin to children

    Parents desperate to get their troubled sleepers to bed are turning to synthetic melatonin, which is a supplement sold over the counter. But expert warn it could have adverse effects on child development.
    Many adults turn to sleep aids like melatonin, but now more parents are giving them to their kids, too. We talked to physicians to see what they had to say about how it could affect your child's development.
  • Consumer

    How much of your donations really go to charity?

    How much of your donations really go to charity?

    In the aftermath of a disaster, donations are top of mind for many people and can do a world of good! But how do you know where your money is really going? America Now investigates!
    In the aftermath of a disaster, donations are top of mind for many people and can do a world of good! But America Now learned that some non-profit organizations receive only pennies on the dollar raised through solicitation campaigns. So how do you know where your money is really going?
Powered by WorldNow