GSpD

Goldman Sachs Group, Inc. (The) Dep Shs repstg 1/1000 Pfd Ser D Fltg

18.9600
USD
-0.94%
18.9600
USD
-0.94%
18.1000 29.9800
52 weeks
52 weeks

Mkt Cap 1.02B

Shares Out 54.00M

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3 Signs You're Better Off Renting a Home This Year

At this point, a lot of would-be buyers are getting frustrated with their lack of progress on the homeownership front. Home prices have been inflated since the latter part of 2020, and that alone has been a deterrent for buyers on a budget. Compounding the problem is that housing inventory has lacked in a very big way. That's put buyers in a position of having to overbid on homes and still risk losing out. And, there's been a limited supply of starter homes on the market, which has been a particular problem for first-time buyers. Still, you may be tired of renting and itching to buy a place of your own. But if these three things apply to you, renting could make the most sense this year. 1. You don't have a 20% down payment to put down Home prices today are very expensive. Plus, taking out a mortgage has gotten more expensive. That's because mortgage rates have been rising sharply since the start of the year, and they're likely to continue climbing. That means you probably can't afford to make homeownership any more expensive for yourself. And if you don't have 20% to put down on a home, then you can bank on your mortgage costing you more. You'll be hit with private mortgage insurance, a costly premium that gets tacked onto a conventional mortgage, when you don't make a 20% down payment. As such, you may be better off renting this year and waiting to buy until you can save more money to buy a home with. 2. Your credit score recently took a hit As just mentioned, borrowing for a home has recently gotten more expensive. And if your credit isn't great, it could end up being even more expensive for you. The lower your credit score, the more interest a lender might charge you for a home loan. That's because a lender is apt to feel like you're more of a borrowing risk with a lower score. As such, if your credit score recently dipped, it pays to spend some time boosting it before applying to borrow money for a home. And that could easily take you into 2023. 3. You're worried about losing your job Many financial experts are sounding warnings about an impending recession. And that's a possibility it's important to brace for. Now if you work in a fairly recession-proof field (for example, if you're a pediatrician or teacher), then you may not have to worry so much about losing your job during periods when economic conditions sour. But if you work in an industry that's more likely to feel the impact of a recession (say, you do something creative or work in travel or retail), then your job may be less secure during a recession. If that's the case, you may want to continue renting this year and putting plans to buy a home on hold. Eager as you may be to own a home, it's important to do so when the timing is right. And if these things apply to you, you may be better off sticking to a rental this year. The Ascent's Best Mortgage Lender of 2022 Mortgage rates are on the rise — and fast. But they’re still relatively low by historical standards. So, if you want to take advantage of rates before they climb too high, you’ll want to find a lender who can help you secure the best rate possible. That is where Better Mortgage comes in. You can get pre-approved in as little as 3 minutes, with no hard credit check, and lock your rate at any time. Another plus? They don’t charge origination or lender fees (which can be as high as 2% of the loan amount for some lenders). We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Compound. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

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