You could spend hours researching whether it’s best to pay rent every month or if you should become a homeowner. This ongoing argument has yet to be settled and is far from over. The endless pros and cons lists of each side are constantly getting lengthier. Friends and family are both homeowners and renters, making it even more difficult to decide. Read how becoming a homeowner can help you in the long-run, instead of paying a landlord or leasing office rent every month.
Purchase over rent
Once you’ve decided that buying your own home is something that’s right for you, you should start to consider some important factors. Determine if you are even able to afford such a big purchase. Your loan officer will have different options to view. Be sure to weigh all of these options and to think realistically about payments. Down payments and closing costs should be associated with this thought as well. Also, be sure to think long-term. By thinking long-term, contemplate what location you can see yourself living in for a while. Factor in distances to work, schools or any other route you will be taking often.
Building equity through home buying
People who favor the idea of buying versus renting often bring up that fact that you are able to build equity in your home if you decide to purchase. Your equity increases as you pay down your mortgage. Instead of handing over a monthly rent check and never seeing it again, it will feel good to know that you are investing money in something that you, yourself own. While equity takes a while to accumulate, there are other ways to speed up the progression. To build equity quickly, you could add value to your newly purchased home by completing minor home improvements. Not only will you benefit from your home’s innovations, but you will be glad to know the value of your home is increasing along with home equity.
When it comes down to it, be sure to really consider both of your options. After all, you know your current situation better than anyone. Many sites offer online calculators that help you determine if it’s in your best interest to rent or buy. It also wouldn’t hurt to keep a close eye on daily mortgage rates. See today’s rates!