The idea of owning a home and all the responsibility that goes with it can be overwhelming, especially if you’re a first-time homebuyer. Buying a home requires advance financial planning, decent credit scores and savings for a down payment. But the good news is you don’t need to get stuck in an endless cycle of renting, especially if you long for a home to call your own. In today’s historic low-interest environment, homeownership is within your grasp now more than ever. The benefits of homeownership are many, from lower monthly payments to putting your personal stamp on it to realizing long-term financial gains and saving for your family’s future. While renting may seem like the best solution right now, years of “throwing away money” with nothing to show for it can get frustrating over time.
Here’s Why Owning a Home VS. Renting May Be the Right Choice For You:
- You’ll enjoy a fixed monthly payment. A fixed-rate, 30-year mortgage stays the same year after year, so you know exactly how much you need to come up with each month to pay your lender. Renters are subjected to rent increases every year as your landlord has the legal right to increase your rent (the amount varies by state).
- You’ll build a long-term investment for the future. When you own a home, you build up equity by paying your loan down over time, so chances are good that you’ll sell at a profit when the time comes. Renting can feel like “throwing money out the window” because you have nothing to show for it month after month and your landlord reaps all the benefits, not you.
- You’ll receive a tax deduction. You can deduct your mortgage interest and property taxes on your yearly tax return, which may add up to significant savings. Renting does not offer you the benefit of a tax deduction.
- You can decorate and make the home your own. Want to paint an accent wall black? No problem. Want to rip up the carpet and put down wood flooring? Go to town. Renting often restricts you from putting a personal stamp on your home. Usually, you are limited to living with the existing décor, whether it’s flooring, lighting, paint, etc. When a house is yours, you can decorate and remodel it to your heart’s content. And home improvements can also increase the property’s value.
- You can keep all your pets with you. Pets are considered family to most people. But when you rent, your landlord can impose restrictions on the number of pets you can keep, the breed, the size and the weight of your pet. In most cases, you’ll be required to pay a monthly fee to keep your pets with you.
- You can put down roots. When you own a home, you often feel more grounded, which leads to making new friends and establishing ties to your community. Leases are usually yearly or month to month, which means your landlord can decide not to renew your lease the following year, leaving you with the hassle of searching for a new place to live again.
Find a Lender You Trust
Ready to leave your rental contract behind and start enjoying the benefits of homeownership? One of the first steps in your homebuyer journey will be to find a trusted lender with a respected reputation. The seasoned loan specialists at NP, Inc. can help. We have been a top lender serving thousands of satisfied borrowers for 25 years. With our personal approach to lending, you’ll receive the highest-quality services with products that can be customized to your unique financial needs. We offer many different loans at the most competitive rates and Non-QM (Non-Qualifying Mortgage) loans if you have less than stellar credit or are self-employed. We invite you to visit our website at https://usmtg.com/, where you can complete a loan application and learn more about how we can help you own your dream home.
By Susan Sherman for NP, Inc.