Not sure you’re ready to ditch the rental and move into a place you can call your own? While some may say that renting is easier than owning, in today’s market where rent is predicted to continue increasing, locking in a mortgage rate now may prove advantageous in the future as rates are also predicted to continue rising. Still not convinced? Let us help.
#1 – Renting Builds Wealth
Each month when you pay rent, you’re not getting any closer to owning a piece of that apartment or rental home. When you own your home, your payments are going toward four things – principal, interest, taxes and insurance. Principal is the amount you borrowed and must pay back. Each month when you pay your mortgage, you’re lowering the amount of principal left on your loan and increasing the amount of home that you own free and clear! Over time as you pay down your mortgage, your net worth increases!
#2 – Home Values Increase
While we can’t guarantee homes will maintain or gain value, historically, values have increased over time. What advantage does this give you over renting? If you decide to sell your home, you can take advantage of the appreciation that you’ve gained over the course of time you’ve lived in your home. The simple answer – more money going into your pocket upon a sale.
#3 – Owning Provides Tax Benefits
Some people benefit from mortgage interest and real estate tax deductions; some don't. Before filing your taxes each year as a homeowner, it’s good to talk with your tax advisor to see what deductions you may be overlooking. Either way, the real cost of owning can still be less than renting.
Ready to move forward? Contact a Loan Originator in your area today to quit paying for your landlord’s home and start investing in your own.