Home ownership makes financial sense
Posted May 16, 2015 12:34 p.m. EDT
Updated August 18, 2015 11:23 a.m. EDT
Imagine being able to save more, afford more personal spending and give away more each month. Your budget can probably handle all three, but not as long as you’re renting. In recent years, rental costs have increased while home ownership costs have decreased – making home ownership the best way to invest your money.
Mortgage interest rates are historically low, which means the payments you’re making for rent could be much more valuable to you if you were making them on a home loan. Here are several reasons why you should consider making the cost-saving transition from renting to owning.
The way to build equity is through home ownership
Your monthly rental payment won’t build equity because you don’t own the property. Owning a home earns you equity value that can be unlocked to use for your children’s college savings, home improvements, paying off debt or several other enticing incentives.
You can afford more than you think
Renters often believe the myth that home ownership is more expensive than renting. In most cases, this could not be further from the truth. What you are paying each month in rent could equate to a mortgage payment for a home that is as nice or nicer than what you’re currently living in. A qualified loan officer can help you crunch the numbers and learn what kind of property you could afford with the amount you’re paying in rent.
A fixed-rate mortgage payment never goes up
Say goodbye to the fear of a monthly payment increase. Your rent almost always goes up when your lease is renewed, but with a fixed-rate mortgage, the principal and interest payments never go up. You can plan for the future without the stress of paying more rent.
Owning means tax benefits
Your rent payment is not tax deductible. The tax incentives of owning a home alone can make the switch from renting to owning worthwhile. If you own a home, the interest portion of your mortgage payment could be tax deductible and you may also be able to deduct real estate property taxes and any points you may have paid at closing.
If you’ve been paying rent and have good credit, now is the time to make the transition to home ownership and experience all these benefits and more. Talk to a qualified loan officer at Movement Mortgage today to learn more about your financing options to stop renting and start owning.