For some, renting is a great idea. Think about it, there's no big financial investment and demands only a short term commitment. It's perfect for those who have just moved to Baltimore or are attending college. Renting does not require putting down a large down payment or coming up with closing costs. Any depreciation in value is not the renter's worry.

On the other hand, believe it or not, buying a larger home in a better location can actually cost less per month than renting! Here's a great example of what I mean. I just got a call from a young woman named Sarah* who is looking for a "great rental" on Canton Square for $2,000 per month. Ummmmm....not possible I'm afraid. A rental at this price would be 7 blocks further away from the square and a miniscule 1,200 sq'. However, there's a terrific 3 Bedroom house for sale 1 block from the square for only $1,500 month after deductions! It's twice as big, has garage parking, four stories tall and has a great rooftop deck with water views. It's priced $40K under market and requires only $9K in closing costs. If you rented a place like this, it would cost at least $2,500 per month. Sound interesting?

But let's forget the finances for a minute. Why did you even begin to consider purchasing a home? The Fannie Mae National Housing Survey shows that four of the biggest reasons people buy a home have nothing at all to do with money. They want a place to raise and educate their children, a place where their family will feel safe, to have plenty of living space, and to have control over the space. What nonfinancial benefits will your family gain from owning a home? Your answers to that question should be the reason you decide to purchase or not. The bottom line is that the cost of a home will probably remain relatively unchanged even if prices continue to depreciate. Don't allow money to be the only factor in making the decision that's right for you. Give me a call. I'll help you figure it all out. 410.529.2900.

Price is the major concern for sellers, COST should be your primary concern as a buyer. You need to take into account what your monthly payment will be, considering the price of the home AND your interest rate. Waiting for prices to bottom out, while interest rates increase will cost you more over the life of the loan. Fannie Mae, Freddie Mac, the National Association of Realtors®, PMI and the Mortgage Bankers Association are all projecting interest rates will increase. It's a good idea to speak with me now to determine how an interest rate increase would affect your buying power. That will help you make your decision. Call me at 410.529.2900 or email me tom@mctearrealtors.com