E Mortgage Management's Kevin Crichton Shares Insight on How to Make the Right Housing Decision

Kevin Crichton shares Insight on how to make the right housing decision. The choice between buying a home and renting one is among the biggest financial decisions that many adults make.

E Mortgage Management’s Kevin Crichton shares Insight on how to make the right housing decision. The choice between buying a home and renting one is among the biggest financial decisions that many adults make.

But the costs of buying a home are more varied and complicated than renting, making it hard to tell which is a better deal.  For many, it comes down to emotional considerations as well as financial ones.

Kevin Crichton, President and Chief Operating Officer of E Mortgage Management, LLC (EMM), offers some expert advice: 

Crichton says that the purchase of a home is an important, personal financial decision. "Consider what you want in the long and short term, do your research and go forward with the right opportunity for your housing needs"

Kevin A. Crichton, President and COO

“Equity makes the most sense,” says Crichton. “Home ownership offers stability and in the current market, buying is the valid and logical choice.  It also will give you a sense of pride and community.” 

Crichton points to a mortgage finance and economic forecast recently released by The Mortgage Bankers Association (MBA).

MBA now projects that purchase originations will reach $801 billion in 2015 and $885 billion in 2016. That is an increase of $71 billion and $94 billion, respectively, over the association's previous forecast.  “More sales are being financed and more applications are being approved, a trend that will continue into 2016 and beyond, as the broader economy and job market continue to improve,” Crichton said.

“Housing is affordable and there are many low-down payment program options.  If you have good credit and 10% down, you are a prime candidate for a fantastic mortgage,” Crichton says.   

Other advantages of a purchase, according to Crichton, are the tax deductibility of mortgage interest and real estate taxes.   He recommends looking for a purchase with low maintenance that has been updated and getting a one-year home warranty to offset any replacement costs in your first year. 

‘While I don't advocate considering investment value when purchasing a home, there are still plenty of valid reasons to own instead of renting, especially in the current low rate environment,” Crichton adds.   “Home ownership simply makes more sense than renting, especially over a long-term basis.”

Most people in a position to buy a house already have very good credit. Regardless, a mortgage will certainly report to the credit bureaus, and a rental company will almost certainly not. There are few items on a credit report that demonstrate financial responsibility and general stability in life better than a long history of on-time mortgage payments.

The so-called "forced savings" argument is a widely held one.  Since homeowners have to pay their mortgage every month, they are routinely putting money away (and into their house, which they own), instead of squandering it on luxury items that lose their value. “If you eventually sell your home after the mortgage is paid off, there's a good chance that you'll walk away with a payoff, even after subtracting the costs of ownership,” Crichton says.  

He points to some other advantages of home purchase.  Want to get a new family pet? Go for it! Want to landscape your yard, put in a pool, add on another bedroom, or remodel your kitchen? These are some things that are out of the question in virtually any rental situation and can be as easy as applying for a building permit if you own your own home. If you're a dog lover, finding an apartment can be a nightmare.

Crichton says that the purchase of a home is an important personal financial decision. "Consider what you want in the long and short term, do your research and go forward with the right opportunity for your housing needs". Crichton concludes.

E Mortgage Management, LLC (emmloans.com) believes in the "customer for life" philosophy and works diligently to provide honest, dedicated and personable service to all people in need of residential home loan services. Take a minute to review client testimonials on their website.

 

About E Mortgage Management LLC (emmloans.com)

Lender NMLS 2926. Equal Housing Lender, Equal Opportunity Employer. emmloans.com is a private, direct-endorsed local lender, in business for over 12 years serving clients nationwide through its network of home loan agents. The company offers products sponsored by Fannie Mae (FNMA), Freddie Mac (FHLMC), Home Affordable Refinance Program (HARP), Federal Housing Administration (HUD-FHA), U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), individual state programs, and has access to a portfolio of private investors, nationwide. 3 Executive Campus, Suite 520 - Cherry Hill, NJ 08002

SOURCE E Mortgage Management, LLC