It’s a major responsibility and a giant up-taking, but owning a home comes with some big-time benefits – one being peace of mind. Here are a few other benefits to owning versus renting:
You’re Building Up Equity Every Month
What is equity? It’s the amount you sell your home for, minus the money you still owe on it at the time of sale. The amount you owe reduces each time you make a mortgage payment. Your principal payment increases each month, too, meaning that as time goes on, you’re paying more toward the actual loan amount versus interest. Equity in your home is typically lowest at your first mortgage payment and highest at your last payment.
It’s Cheaper to Own a Home Than Rent – In the Long Run
Buying and owning a home may be frustrating at the very beginning because of interest rates, mortgage payments and the entire legal process that goes along with it. You may think it’s easier – and cheaper – to rent a house, but it’s not, really. After a while, your interest rate will decrease. Plus, each month that you’re making a payment, you’re putting money toward your own home, not sending hard-earned cash into a landlord’s pocket.
As a Homeowner, You’ll Enjoy More Stability
Owning a home actually brings much freedom and a sense of independence. The house belongs to you and you can do whatever you want to it. You don’t have to worry about a landlord hiking up your rent at the beginning of a new year or risk being kicked out of the house. Any improvements that you wish to make benefit no one else but you! Plus, if you have kids, you’ll have to worry less about having to switch school districts on-the-fly because you won’t have to worry about being asked to vacate.
Improvements Are Made for Your Own Good
Let’s talk about this a bit more. Once you a buy a house, you’re no longer restricted by a landlord’s guidelines or requirements on paint, decor or design. You get to decide what type of construction, design or maintenance professionals you’ll hire to work on the home. Any improvements made to a rental are enjoyed by you for only as long as you’re living in the home. Once you leave, your updates will benefit the next renter.
Are you you in the process of looking for a new home? Let RedStone Mortgage assist you in finding loan options that meet your individual needs. Call us at 480-759-1500.