In a recent video displayed by MSN, ABC15 Arizona newscasters Dan Spindle and Kim Tobin discussed whether buying a home or renting a home is better in the current market.
The discussion, posted on the Arizona Association of Realtors website, said during the housing market crash, Phoenix was a community hugely affected by it and the association expects this year to be different.
The association's D. Patrick Lewis said buying now can “freeze time” and lock in your rates, even if home values rise," the posting said.
Lewis continued and said that "renting is actually expensive." Currently in the market, renters have seen one-bedroom apartments have a $900 monthly rent payment. Instead of putting a monthly sum into rent, Lewis told viewers to invest money into equity, "buying now let's you 'freeze time," he said.
When investing in a home, some worry if the value of the home increases, your mortgage payment will spike as well. Lewis said that's not the case, in the video posting. Should your home value increase, your mortgage will stay the same.
If you wait to purchase a home but have decided to wait, Lewis warned that prices could inflate. "That’s where getting the mortgage and doing it now, you literally freeze time. You pay that for the next 30 years," he said in the posting.
Spindle concluded in the video that it isn't always necessary for homebuyers to put down 20 percent to qualify for a loan. His tip in the video: "Find a trusted Realtor to guide you through that whole process."