It’s spring and the beginning of the traditional homebuying season! Are you considering a new home purchase? Are you ready to become a home owner for the first time?
Buying a home is a big decision. Many things should factor into your decision, but if you are close to buying and just need a push in the right direction this spring buying season, check out our list of the eight most beneficial reasons to buy instead of rent:
- Tax Deduction Benefit – Did you know there are deductions you can claim when it comes to your home mortgage and property taxes? Any interest paid on your mortgage can reduce your taxable income. You can also deduct qualified expenses, such as certain energy-efficient upgrades – which could even save you money on your utility bills! At the end of every year, the company that owns your mortgage will send you a statement with how much interest you have paid on your loan for the year (Form 1098 – here is a sample of what it looks like). Bring your 1098 forms to your tax preparation professional and take advantage of the mortgage interest and other deductions afforded to home owners.
- Aesthetics – Owning a home gives you the opportunity to make any changes without worrying about what your landlord would say or losing your security deposit. You can paint rooms a bright new color, change old carpeting to hardwood floors or even knock down some walls to create a larger space! Not only do you get to enjoy new surroundings and new things, but the value of your home should increase. Building equity in your house is one the largest sources of household wealth for Americans.
- Security – When you rent, you could be forced to leave in a year if the rent goes up, your landlord sells the property, or if you get noisy neighbors above or below you. With your own home, your rent won’t go up (it actually could go down if you refinance) and you won’t be sharing any apartment walls or ceilings with anyone noisy!
- Better Neighborhoods – When the people you live by own their own properties, they are willing to invest more in the community, which makes it nicer and safer for families. Making a commitment to your community helps you get to know your neighbors and create friendships and ties that you may not get with renting.
- Better Economy – If more people buy homes, more money will be inserted in market. This helps create more jobs and more economic stability. Strengthening the housing industry will create many positive effects on the overall economy.
- Savings & Investment – Paying your mortgage every month is like forcing yourself to save money. You are investing in your home as its value increases over time, which could allow you to make money on the sale of your home, should you ever choose to sell. Because your house is an asset, you are building equity with every mortgage payment. And, unlike renting, you are able to borrow against that equity should an emergency arise.
- Low Rates – Rates continue to hover near historic lows! Rates are hovering right around 4 percent for 30-year fixed rate mortgages. For information on the history of mortgage rates, click here.
- Home Affordability – If you took advantage of low mortgage interest rates, rest assured that if you took out a fixed mortgage, your interest rates will never go up, even as we experience inflation, while rent payments can go up. This will save you money as prices for just about everything else goes up. Finance the home of your dreams now and reap the benefits of home appreciation later!
Obviously, the benefits of home ownership will vary from person to person, but this list discusses some of the major advantages of buying a home versus renting.
There are variety of loan programs designed to help you realize your dream of homeownership, including low or no down payment options. Each mortgage loan program has its own benefits as well as income and credit requirements. Our licensed loan originators can help you decide which is best for your specific financial situation and provide a pre-approval to aid your spring house hunting efforts!
- Conventional Mortgage Loans – Traditional program that usually requires as low as 3% down and offers competitive interest rates.
- FHA Mortgages – FHA mortgages enable the borrower to put as low as 3.5% down and are available to borrowers with less than perfect credit.
- USDA Mortgages – USDA mortgage loans are designed to help lower income individuals or households purchase homes in rural areas
- VA Mortgages – VA mortgage loans are federally guaranteed mortgage loans for veterans that don’t require a down payment.
Find a licensed Inlanta Mortgage loan officer near you using our branch locator.
(Are you unfamiliar with the mortgage loan process? Click here to read more about the mortgage loan process.)