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
October 31, 2024When buying a home for the first time, it helps to know how long the process can take. How do you know if your appraisal report is delayed if you don’t know how long the FHA allows for the process to be completed? How long does it take to get from the final offer to closing day? A “typical” FHA loan process may take up to 45 days from start to finish. Several factors can influence this timeline.
October 30, 2024Just because an FHA loan is designed to be more lenient with FICO scores and require a lower down payment doesn’t mean the house you buy with that loan is less than ideal. Did you know that FHA loans have minimum property standards to ensure the home is safe and livable? Those standards require the home to have an “economic life” for the entire term of the loan so you can freely sell the property later on if you choose to do so.
October 29, 2024Buying a home with an FHA mortgage is a major life decision, and preparation is essential before you start house hunting or consider making an offer on a property.
How to get started? In the early stages, establishing your budget and how much work you need to do on your credit is key. But once you have gotten past the initial phase of that planning you’ll want to consider the house itself and what you want from it.
October 25, 2024Mixed-use properties combine residential and commercial spaces. Some borrowers applying for FHA home loans want to know if purchasing such a property using an FHA single-family home loan is possible. The FHA does allow the use of its loans for mixed-use properties, but certain conditions must be met.
October 24, 2024Buying your first home is a major milestone. If you use an FHA mortgage to buy your home, you’ll have two types of insurance to consider. One type is the FHA-required mortgage insurance premium, which is paid for 11 years or the loan's lifetime, depending on your down payment, loan term, and other variables.
