vs Buying a Home
you considering buying a home? You've probably heard
how owning a home is part of "the American dream",
haven't you? For most Americans the advantages of
owning a home far outweigh renting.
take a look at the advantages both renting and buying
of owning a home
are building up equity when you own a home -
This occurs because of two factors: The first is simply
because the house increases in value over time. The
second is every time you make your mortgage payment,
part of it goes towards principle, so the amount you
owe on the house goes down.
advantages - The interest you pay on your
mortgage every month is tax deductible. This means
if you pay $10,000 a year in interest, you are reducing
your taxable income by that amount, which lowers the
amount of taxes you pay. This is a significant savings,
especially since the typical mortgage has mostly interest
charges the first few years of the term.
of ownership - Let's face it, it feels good
to own your own home! You can also remodel and redecorate
it the way you want.
and steady payments - With a typical mortgage
your payment will not change year to year. However,
it will change somewhat due to your escrow payments
for taxes and insurance. Even so, it is more predictable
and stable than renting.
credit rating - There must be a reason they
always ask if you own a home or rent, right? That's
because it helps your credit to own a home because
statistically for lenders, people who own a home are
a better credit risk than those who don't own a home.
maintenance work than a home. You probably
won't have to mow a lawn, trim trees, shovel the walkway
and fix the toilet.
it's easier to rent than buy a home. You
don't have to come up with a big down payment like
you would with a house. Typically, just a deposit
equivalent to the first month's rent is all that is
you want to move, you pack your things and leave.
A homeowner will have to deal with the hassles of
selling their house, packing, and working out where
their next home will be, all at the same time! It's
not unheard of for someone moving out of a house,
living in a hotel room for 2 months because they are
If you can
afford the down payment on a home and can qualify for
a mortgage, owning a home is probably more advantageous
than renting. The pride of ownership, the increase
in your equity and yes, even the hard work of remodeling
and gardening are very rewardable. At least they are
is the next step?
If you are going to buy a home, try America’s
Lending Partners’ free loan request service that will
match you with up to four lenders to help you lower
your interest rate.
luck on your home purchase!