Is Owning your own home really better than Renting?
Trulia reported that:
“Homeownership remains cheaper than renting nationally and in all of the 100 largest metro areas. Rising mortgage rates and home prices have narrowed the gap over the past year, though rates have recently dropped and price gains are slowing. Now, at a 30-year fixed rate of 4.5%, buying is 38% cheaper than renting nationally, versus being 44% cheaper one year ago.”
The Cost of Renting vs. Owning a Home
Homeownership is a GREAT Financial Investment!
And Here’s Why
- Homeownership forces you to save and increases your net worth!
- Part of your mortgage is tax deductible! Property taxes, interest that you pay each month on your mortgage, and energy-efficient additions to your home can all be deducted from your taxes!
- You can create your dream home! Being a home owner, you have control over your redecorating or remodeling. As a renter, you are basically living in someone else’s home.
- Owning your own home allows you to lock in your monthly housing cost! Trulia shows that rents increased by % nationally last year, with larger metro areas having even sharper increases!
Are these Homebuying Myths Holding You Back from Buying?
Myth #1: I Need to Save 20% For a Down Payment
FACT: There are mortgages for some Buyers who have saved as little as 3% for their down payment! VA loans require NO down payment! There are also a number of down payment assistance programs available!
Myth #2: I Need a Perfect Credit Score
FACT: It is not necessary to have PERFECT credit to qualify for a mortgage, although weaker credit usually means that a buyer may not receive the lowest mortgage rate available. There are also tons of credit repair companies out there that are willing and ABLE to help you bump your credit that little bit for you to get those lower rates. Just because one lender says no doesn’t mean they will ALL say no. Every lender is different!
Owning a home has always been, and will always be, better from a financial standpoint than renting and knowing your options will make the mortgage process much easier!