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Market forces make home buying more attractive than renting

People in Maryland who have been dreaming of home ownership should be motivated to start house hunting. Historically low mortgage interest rates and rising rents are increasing the appeal of buying a home.

Although interest rates on mortgages could rise, they still offer an opportunity to produce significant savings on a home purchase. Currently, 30-year fixed rate mortgages only demand about 4 percent in interest. Even with housing prices inching upward in some markets, a low interest rate could result in a payment within reach of many people. According to one real estate broker, low interest rates could create hundreds of thousands of dollars in savings over the decades of a mortgage.

High rents also make buying a home an attractive financial move. In 20 of the 35 largest housing markets in the country, rents increased at a higher rate than home prices during 2015. Data collected by revealed that 88 percent of property managers chose to increase their rents last year. also predicted that rents would continue to climb in 2016 by 8 percent. Switching to home ownership would allow a person to spend money on an asset instead of simply giving it to a landlord.

Buying real estate, however, tends to be a complex transaction. A person purchasing a home needs to not only obtain financing but be prepared for the responsibilities of owning a property. Consulting an attorney when buying a home could offer someone an extra level of information when making large financial decisions. An attorney could explain the terms of a purchase agreement or examine other concerns that might arise like easements or environmental issues. An attorney could alert a person to potential problems and attempt to negotiate solutions with the seller when feasible.

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