When Deciding To Rent Or Own Your Own Home
November 21, 2024
While renting offers relocation flexibility and lower upfront costs, homeownership provides a wealth of financial and personal benefits.
Depending on circumstances, owning can be financially better over the long run than renting. What should renters know about owning their own home instead of renting?
- Potential Equity Growth: Every mortgage payment means more potential equity in your home. The longer you pay your mortgage, the more equity you build.
- Tax Advantages: Depending on current tax law, homeowners can often deduct mortgage interest and property taxes. Check with a tax professional to learn more.
- Inflation Hedge: Real estate is generally considered a good hedge against inflation.
- Ability to Refinance: Some will refinance for a lower interest rate, others may refinance to cash out their home equity. The choice is yours.
Personalization and Freedom: One of the greatest joys of homeownership is the ability to personalize your space. Want to paint the walls a vibrant color? Knock down a wall to create an open-concept living area? When you rent, these options are less open to you.
Stability and Roots: Owning a home provides stability and permanence. You're not subject to lease renewals or rent increases, and you can truly settle into your local community.
Privacy and Space: Enjoy the peace of your backyard, create a home office tailored to your needs, or relish the freedom to spread out without sharing walls with neighbors.
How To Decide?
The choice between renting and owning is a personal one. Factors like your financial situation, lifestyle, and financial goals are important to remember when making decisions about renting. Essential questions about renting versus owning include, “How long do I plan to stay?” and “Am I truly ready for the responsibilities of owning a home?”
Renting may offer some a more flexible lifestyle, but homeownership means adding potential financial and personal benefits to your financial position.
FHA Loan Articles
January 20, 2025The FHA Streamline Refinance offers a refinance option for those who don't want to cash in on their property's equity but instead want a lower payment or interest rate or who need to get out of an adjustable-rate mortgage. This streamlined program, designed specifically for those already in an FHA-insured mortgage, simplifies the refinancing process with fewer requirements and faster approval times depending on the transaction.
January 16, 2025Want to buy a home and thinking about getting an FHA loan? FHA loans are a great way to make homeownership happen, especially if you're a first-time buyer or don't have perfect credit. But you might wonder, "Can I get more than one FHA loan?"
The short answer is, it's tricky. The FHA itself doesn't say no automatically to having more than one loan. But there's a caveat. FHA loans are about helping you buy a place to live in – your main home base. Because of this, and a few other things, getting multiple FHA loans isn't easy.
January 15, 2025Buying a condo with an FHA loan is an option some don’t consider initially, but it’s worth adding to your list of potential property types. FHA loans for condo units traditionally require condo projects to be on or added to the FHA-approved list. Still, changes in policy over the years allow borrowers to apply for FHA loans on condo units in projects not on the list on a case-by-case basis.
December 30, 2024When applying for an FHA loan, lenders will consider more than just your credit scores and history. They also look at other factors affecting your risk profile and the interest rate they offer you.
One factor is occupancy type. For FHA loans, this is straightforward because these loans require owner occupancy. Investment properties aren't eligible. While conventional loans may have different rates for primary residences, second homes, and investment properties, this isn't a concern with FHA loans.
December 18, 2024Did holiday spending get the better of you? Are you looking for ways to recover your spending plan as you search for a new home?
The holidays are a whirlwind of festivities, family gatherings, and gift-giving. But amidst the cheer, it's easy to lose track of spending. If you're aiming to buy a home in the near future, those extra expenses can have a bigger impact than you might realize, especially if you're considering an FHA loan.
