Making the decision to enter the world of homeownership rather than renting is one of the most important decisions you’ll make in terms of your financial stability and your personal happiness. Owning a home isn’t for everyone. You need to consider your lifestyle and your goals. But overall, the advantages seem to outweigh the disadvantages when it comes to owning a home. We’ll take a quick look at why you should consider the benefits of homeownership before you pay your next rent check.
With no landlord to tell you what you can and can’t do with your dwelling, you’re at liberty to enjoy your home, inside and out, in a way that fits your style and way of life. Although you are now responsible for maintenance and repairs, the freedom to paint walls, make upgrades, create a garden, or improve landscaping allows you to not only enjoy the improvements but potentially increase your home’s value. As an owner, that “value” can help you when you eventually sell the home. Unless you have rules from a homeowners association, you can choose to have pets, build a fence, and use your home as you please.
Rent payments simply slip away with no long-term benefit to you. But interest on your mortgage payments and home insurance premiums are usually tax deductible. You may even find other tax savings as you make energy-efficient home improvements that increase your enjoyment and comfort and the value of the home. Be sure to contact your tax advisor about how to make the most of these tax savings before you invest in improvements.
Renting long term comes with uncertainty. With each new lease period, payments can often jump unpredictably, forcing you to rethink your living situation at the end of each contract. Moving to find a better monthly payment can be expensive and difficult for other family members if you need to change locations, school districts, work commutes, etc. With homeownership, your monthly mortgage payment is more stable.
Depending on the type of mortgage loan you select, the principle and interest portion of your monthly payment can be consistent, and the escrow, taxes and insurance, aspect is subject to less fluctuation than most rent increases. Plus, monthly mortgage payment amounts can often be less than rent payments.
With each home mortgage payment, you build equity in your home. What is equity? It is the difference between the amount your home is worth at this time and the amount you still owe on your mortgage. The equity you have in your home also has value if you choose to get financing to make home improvements, using your home’s equity as collateral toward the loan for improvements such as room additions, porches, driveways, etc. Pay off the home equity loan over time, and enjoy the improvements and the fact that they have increased the value of your home when you choose to sell it.
Your homeownership can secure your future and that of your family. You can use part or all of your home as a rental property and use the rent payments toward paying off your home — even paying it off faster! When you die, the value or equity in your home can help your family or heirs to pay off any outstanding debts you may have. And a home that is debt free can be a valuable gift to hand down to your heirs.
As you can see from this little lesson in homeownership education, the value of a home can be priceless for your and your family’s happiness and security. Although renting a home makes sense for those whose lifestyle and location change frequently, ownership makes better sense for those who plan to stay in one place for a while.
21st Mortgage is here to help you when you decide the purchase of a manufactured or mobile home is right for you. These homes are often the perfect fit for those entering the homeownership market.
We’re here to help make the steps to homeownership easier. Before you know it, you can trade the rent payment for building equity in a home you and your family will enjoy for years to come. Questions? Contact us today.
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