What is the rent trap?
The rent trap is when you’re paying so much of your income in rent you struggle to save enough for a down payment to purchase a home. If a large portion of your income is going to your landlord, being able to buy a home can feel impossible, especially if you have other expenses like student loans or credit card debt. You could find yourself paying much more for rent than you would a mortgage.
How do I avoid the rent trap?
There’s good news: Saving enough to buy a home may not be as impossible as you think. A report from the Urban Institute found that three out of four people believe more than 5% is required for a down payment.** At LMCU, we offer financing with as little as 0–3% down,*** industry-low closing costs, and a member-only MaxMortgage discount that gets you an additional 0.125% off your interest rate.****
Leave the world of rising rent behind and connect with one of our expert loan officers today at LMCU.org/Mortgage or (844) 754-6280. Don’t forget to ask about our MaxMortgage discount.
*Apartment List National Rent Report. Apartment List, January 6, 2022.
**Barriers to Accessing Homeownership. Urban Institute, September 2018.
***For well-qualified borrowers.
****Mortgage payment must be an automatic payment that comes from an LMCU checking account to receive the MaxMortgage discount.
