Rent VS Own ( What You Want To Know Wednesdays )
Choosing to stop renting and buy a home can be a daunting financial decision. Perhaps one of the most daunting decisions we will make in our adult life. There are many reasons to purchase a home. Today’s housing market is packed full of opportunities, it’s a “buyer’s market.” Some advantages of homeownership include: equity, tax deductions, privacy, fixed payments, and pride. If you are considering making the switch to owning your own home, contact one of our Mortgage Professionals! It is entirely free to talk with a Loan Officer and they can help you make an informed decision!
- Equity is the market value of your home and the outstanding liens on the property. The more payments you make on your loan, the higher your equity goes. You can’t build equity in an apartment or rental property. Rental payments do not contribute to the value of your home like a mortgage payment does. Every mortgage payment you make contributes to the equity of your home.
- The interest portion of your mortgage payment could be tax deductible. Your rent payment is not. Consult a tax advisor to find out more tax credits to owning a home.
- Owning your own home gives you privacy. Apartments share walls, ceilings, and/or floors. Rental properties may not be as lenient with design ideas as well.
- Rental payments can increase when it is time to renew your lease. A fixed rate mortgage payment will never go up. There are also refinance options that may even lower your payment.
- Owning your own home gives you a sense of pride and comfort. There is less likely to be restrictions on how you decorate your home or lawn, so you can create something that is uniquely you and worth being proud of!
- Interest rates are currently low. You can find a 30-year fixed rate loan in the low to 4% range; three years ago, rates were above 6%.
- Property values are on the rise.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.
