Why Rent When You Can Own a Home?

Benefits of Homeownership
Why Rent when you can Buy a Home

Renters: Why Rent When You Can Own a Home?

We have discussed the advantages of owning versus renting on previous blogs.  Every renter in California, Illinois, or Florida 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.

Why rent when you can own a home?

As a homeowner, you build equity in your home everytime you make your monthly payment.  Part of the monthly mortgage payment goes towards principal and as you make future mortgage payments, the balance of your mortgage loan will be going down.  The recession of 2008 has caused a drastic reduction in 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 a FHA insured mortgage loan, a home buyer only needs 3.5% of the purchase price for a down payment.  There are closing costs but the closing costs can be covered by the mortgage lender in lieu for a higher mortgage rate or via 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 in California, Illinois, or Florida and are interested in being a first time home buyer, please contact me 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.

Gustan Cho, NMLS ID 873293

Related> Cost of Homeownership

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