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Wake Up and Smell the Equity

It’s a common misconception that renting is always cheaper than buying a home. The reality is that it depends on the local housing market, rental costs, what size home you plan to buy and a variety of other factors. Here’s what you need to know:

• Because interest rates are relatively low, you may find that your mortgage is comparable to a monthly rent payment.
• Every time you write a rent check or have it deducted from your bank account, it’s the last time you’ll ever see that money.
• Part of each mortgage payment contributes to your home’s equity (portion of the home that you own free and clear), meaning that you’re getting a return on your investment.
• Certain major improvements that you make to your home (kitchen renovation, new roof, etc.) may also contribute to your equity.

 

Get That New Home-A-Roma

Beyond the financial aspects of owning versus renting, there’s a wide range of lifestyle considerations.

• You generally have more privacy in a house than in an apartment. No more listening to the guy above you vaccum at 5:00 in the morning. 
• As a homeowner, you can finally get that dog you’ve always wanted. Letting your pup out in the backyard definitely beats walking down five flights of stairs with him multiple times a day. 
• You have free reign to landscape your property any way you want and can plant flowers that drench your yard in your favorite scents.
• Instead of being stuck with the white walls and nasty carpet often found in rentals, you can decorate your home any way you want.

 

Why Buy? Why Not!

Still not sure if buying a home is right for you? Our “7 Ways to Save” tips can put you on the path to homeownership. And if you’re concerned about being able to afford a down payment, don’t let that stop you. We have 142 low down payment financing options that might be the jump-start you need. And some of them don’t require ANY down payment.*
 
Owning property lets you build equity in your home, rather than spending money on rent that you’ll never see again—and it gives you the opportunity to make your memories, your way. From picture-perfect family gatherings to the comforting aromas of your famous apple pie, there’s no place like home.
 
 


 
*Mortgage insurance may be required on loans greater than 80% loan to value and will increase your monthly payment.

- By Lauren Burrus, Jul 02, 2018