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Why Rent When You Can Own A Home And Build Equity

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Why Rent When You Can Own A Home And Build Equity

This BLOG On Why Rent When You Can Own A Home And Build Equity Was UPDATED On June 5th, 2019

We have discussed the advantages of owning versus renting on previous blogs.

  • Every renter should seriously consider buying a home and when they realize how easy it is they will question why rent when you can own a home
  • Granted, that home ownership comes with responsibilities such as maintaining the home and not being able to move in a moments notice, but there are solutions
  • Most renters believe that buying their first home is more difficult than it actually is
  • As long as you have a job and are able to afford a rental apartment or home, you should qualify to be a homeowner
  • In many cases, your monthly mortgage payment can be lower than your monthly rental payment
  • Why rent when you can own a home? 
  • There are many reasons
  • The advantages outweigh the disadvantages

In this blog, we will discuss the topic of Why Rent When You Can Own A Home And Build Equity.

Why Rent When You Can Own A Home?

As a homeowner, you build equity in your home every time you make your monthly payment.

  • Part of the monthly mortgage payment goes towards the principal and as you make future mortgage payments, the balance of your mortgage loan will be going down
  • The Great Recession of 2008 has caused a drastic reduction in the values of homes nationwide
  • Some homes have lost over half their value

Home values have steadily been increasing recently.  Buying a home now be rewarding in fast future home appreciation values.

Why Rent When You Can Own A Home?

Renting pay a monthly rent for the use of the apartment or home.

  • This rent money is just an expense and can never be recovered whereas, with a mortgage payment, the principal portion of the mortgage payment reduces the loan amount
  • The security deposit needed to rent a home can be used towards the purchase price of the home
  • For an FHA insured mortgage loan, a home buyer only needs 3.5% of the purchase price for a down payment
  • There are closing costs
  • The closing costs can be covered by the mortgage lender in lieu of a higher mortgage rate or via the seller’s concession

For those with excellent credit, they can qualify for a 3% down payment conventional mortgage loan.

Get Qualified For A Home Loan

If you are a renter and are interested in being a first time home buyer, please contact us at Gustan Cho Associates at www.gustancho.com .  There is no cost for a consultation and I can qualify you for a mortgage loan.  We can go over what the maximum home mortgage loan you qualify for and what your monthly payments will be as well how much money you will need to purchase a particular home. For more information, please contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com.

Related> Cost of Homeownership

Related> Pros and Cons of Buying versus Renting a Home

Related> Buying versus Renting in California

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