Unsure if you should buy a home or continue renting? Check out these reasons why purchasing a home can be a smart financial decision.
1. Build Equity
– When you rent a home, your monthly payments can help you build credit. However, when you own a home, your monthly mortgage payments may allow you to build equity over time.
In the third quarter of 2018, the average homeowner across the nation saw their equity increase 9.4% year over year, which averages approximately $12,400, according to CoreLogic Homeowner Equity Insights report for Q3 2018.
2. Stable Payments
– In most metropolitan areas, renters are devoting a larger portion of their income (31.8% to 36.8%) to housing than homeowners (20.2% to 26.5%), according to a 2018 Zillow report
. Rental payments often increase each time your lease is renewed. With a mortgage payment, you are able to lock in a fixed-rate so your principal and interest will remain the same for the duration of your loan. Plus, a monthly mortgage payment may be less expensive than renting in your city.
3. Tax Benefits
– Real estate property taxes, pre-paid interest, points paid, and some other loan origination fees are some of the items that may be allowable under current tax regulations if you itemize.
4. Gain a Community
– When buying a home, you have the opportunity to live in a neighborhood. Many neighborhoods have associations that will plan events and gatherings so you can get to know the people who live around you.
5. Show Your Style
– Often with renting, you are not able to hang certain items on the wall or even paint. Buying a house gives you the flexibility to change the wall colors, install carpeting or hardwood floors and truly style the home to reflect your style and personality.
6. Say Goodbye to Restrictions
– When buy a home you gain the freedom of owning pets and other things that you may have found restrictive while renting.
Ready to get out of the rental rut?
Many first-time homebuyers incorrectly believe that they need a large down payment to purchase a home, which may be holding them back from becoming a homeowner. In fact, depending on their circumstances, location and credit score, a home can be purchased with a much smaller down payment.
CoreLogic is predicting that home prices will increase by 5% in 2019.
Don’t risk getting priced out of your home market. Contact a Certainty Home Loans mortgage professional in your state
to learn how much home you can afford.
Mar 11, 2019