Should I Rent or Own a Home?
Owning a home means more responsibilities, but with a host of rewards, including:
Monthly mortgage payments can be comparable to rent – or even lower – and you’re building equity in an investment that can increase in value. This equity can be used to get money saving home equity loans or as a down payment on your next home.
Rent is usually not tax-deductible, but mortgage interest (including points) on your home usually is. The mortgage interest deduction can dramatically reduce your income taxes. Visit the IRS website at irs.gov for more information about deductibility.
When it’s time for renter’s leases to renew, they may be hit with steep rental rate increases. A fixed-rate mortgage can banish unwelcome dents to your budget. A fixed-adjustable mortgage has stable payments from three to seven years but starts at a lower interest rate and monthly payment. Your monthly mortgage amount, excluding property taxes and insurance, will be the same for as long as your interest rate is fixed. As your salary increases, payments become more affordable.
Freedom to be creative
When you own a home, you can say goodbye to the stale white walls and limited storage space of the most rental property. Bring on the paint, decks, customized closets Ö homeownership can open up a whole new world and improve your quality of life.
If you’re unsure about your job or where you want to live, renting may be the way to go. But if you’re tired of the renting lifestyle and ready to accept the responsibilities of homeownership, it makes sense to buy sooner than later. Even if the mortgage payment is more than your current rent, it’s worth scrimping for the short term to enjoy the long-term benefits.
For more information about home loans speak with a Lend Plus licensed mortgage banker TODAY!