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
November 27, 2024If you are new to the home loan process, you may wonder how your loan officer will interpret your application data. How lenient is the lender with issues related to debt, credit utilization, and related factors? We examine some key points, but remember that what follows is not financial advice. Always consult a finance or tax professional for the most current information.
November 26, 2024
Thinking about buying a home? One of the first things you'll want to consider doing is filling out forms to be pre-approved for your FHA mortgage. This means a lender takes a look at your finances to figure out how much they're willing to loan you. It's a smart move, but you might be wondering: "Will applying for pre-approval hurt my credit score?"
November 25, 2024FHA mortgages include a refinance option that allows you to pull equity from your home in cash. The FHA cash-out refinance loan allows the borrower to take the difference between what remains to be paid on the home and the amount of equity built up.
The FHA loan program has some competition in this area, but how do your other government-backed refinance loan options measure up?
November 21, 2024The dream of homeownership is with some from a young age. But in an uncertain housing market, some grapple with the question: Is buying a home the right move for me?
While renting offers relocation flexibility and lower upfront costs, homeownership provides a wealth of financial and personal benefits.
November 20, 2024Refinancing your mortgage offers a way to cash in on your home equity, potentially reduce your interest rate, or modify your loan term. Borrowers ready to consider have options including FHA loans and conventional loans.
While both provide avenues for refinancing, each loan type may be best for specific needs and financial circumstances. What are the differences between FHA and conventional refinance options?
