The Puget Sound Business Journal just released an article quoting the following data put out by Zillow:
– Renters in the Seattle area pay more than 31.6% of their income toward rent
– Owners in Seattle pay 22.7% of their income toward mortgages
What does this mean to you? Perhaps now is the right time to buy while interest rates are still low. Once you are locked into a fixed rate mortgage (should you choose a fixed rate product), your payments will not increase over time, but rather decrease as you pay down your principal loan amount. However, in a rental, rent can increase anytime your lease is up. Something to consider when deciding if you should rent or buy.
