Benefits of Homeownership vs. Renting
There are many differences between renting and buying a home. If you are curious about homeownership and the benefits that come along with it, educate yourself with this quick video.
For many people, owning a home is the ultimate fulfillment of the American Dream. So, what are the benefits of buying a home versus renting one? Let’s talk about the advantages of homeownership!
There are quite a few, which include: You aren’t bound to specific rules and regulations like in a lease agreement, so you can customize your home whenever you want!
Your mortgage will be predictable and more stable than renting if it’s based on a fixed-rate mortgage. When you pay off your mortgage loan, your home is yours and you'll no longer have a mortgage payment. The opportunity to build equity over time by purchasing your own home. The interest and property tax portion of your mortgage payment may be tax deductible. (*Consult your tax advisor)
Many people believe that renting is less expensive than owning a home. However, it may be cheaper to pay a monthly mortgage than paying rent. Also, a landlord can raise rent or sell the property at any point in time. Let’s say you are paying rent each month. If you paid the same amount for the next 10 years, that money you’re spending towards rent could be put towards a mortgage payment instead.
In addition, you may think that you need to rent because you’re unsure if you qualify for a mortgage, or you don’t have the required down payment. However, there are a lot of unique loan programs with flexible qualification requirements, and some even provide down payment assistance. Carefully consider your financial situation and work with your New American Funding Loan Officer to find the loan that’s right for you. Give us a call today and see what you could qualify for. Make a payment that counts towards your future!