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In this episode, I tackle the frequently asked question of whether to buy or rent in a new location, which is especially pertinent for military families or those with jobs requiring frequent relocations. I cover essential considerations such as mortgage interest rates, down payments, and financial health. Using NerdWallet's calculator, I demonstrate how to evaluate these factors, offering a case study of a client's situation. I also explore the impact of interest rates, transaction costs, and the amortization schedule. Lastly, I discuss how financial stability may influence the decision to rent or buy, emphasizing the importance of personalized advice based on one's unique circumstances.
Key Takeaways:
• How long should I stay in a place if I choose to buy?
• How can I take advantage of the different financial tools, like a VA Loan, to help me make my decision?
• How does the interest rate and down payment affect the amortization schedule?
• How to factor in savings, debt rate, and other budgeting factors into a decision to rent or buy a home.
Key Timestamps:
(00:00) Introduction: Buy or Rent?
(00:51) Calculating Cost to Rent vs Buy
(01:43) The Impact of Interest Rates
(03:55) Down Payment Considerations
(05:46) Client Case Study
(07:35) Conclusion and Final Thoughts
(08:13) Outro and Additional Resources
Key Topics Discussed:
Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, cost to rent, mortgage payments, interest rates, amortization schedule, NerdWallet
Mentions:
More of Baskin Financial Planning:
Download the Ultimate Military Finance Checklist, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.
Think you might need some financial help? Book an intro call with me to see if we would be a mutual fit.
Questions or comments, drop me a note at: erik@baskinfp.com
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