Are you dreaming of a large backyard, two car garage, driveway, and having a place that kids can grow up in? Chances are, you are thinking about buying a home.
Purchasing a house is a major decision in most people’s lives. It can lead to personal happiness, and may help families financially over time. For most people, a home will be the largest purchase they make in their lifetime. Home ownership is a big responsibility, but it can also be very rewarding for a person who is ready.
Here are some advantages to buying versus renting a home:
Do you want to paint your bedroom walls red, or install hardwood floors?If you are renting, that decision is in the hands of your landlord. When you purchase a home, you can decide how your house will look and what renovations will be made. If you decide your house is too small years down the road, you have the option to build more rooms and do a major expansion.
When you rent an apartment, your landlord can change the price of your rent each year. You might live in a building that is very affordable and two years later find that you no longer have enough money for the rising payments. When you own a home, you have the option of getting a fixed rate mortgage that will help keep your monthly payments relatively the same throughout the length of your mortgage. It is important to remember that your taxes may increase or decrease, which will have an effect on your overall monthly payment. If you are interested in taking out a mortgage, contact one of our licensed Loan Originators at NFM by clicking here.
Building equity is one of the most important benefits of buying a home. Most houses increase in value over time, and this in turn increases the owner’s equity. For example, if you buy a home for $300,000 and its market value increases to $350,000 in five years, your owner’s equity would be $50,000. Making improvements to your home can help your home appreciate which in return increases your equity.
Some of your monthly payments go toward taxes. When you own a home, the interest on your mortgage and your property taxes can be used as deductions on your state and federal income tax returns. When you are renting, you are unable to get these tax breaks because someone else owns your home.
Remember that home ownership is a major decision that you should only enter into once you are financially and emotionally ready. For those considering buying a house, we hope that you experience the joys of home ownership one day.