Renting vs. Owning

rentvsownRenting Vs. Owning

 

Renting vs. Owning is one of the greatest debates consumers face. What are the pros and cons of each? Which option is cheaper? What is better for my current lifestyle? These are some of the questions renters face when trying to decide whether home-ownership is the right choice for them.

Contrary to popular belief, renting may not actually be cheaper than owning your own home. Rent prices are on the rise and starting to exceed the cost of a mortgage payment, and there are many other benefits to home-ownership that you may not have thought of, such as investment opportunity, tax deduction, stability, and freedom.

 

Investment Opportunity

Some people say investing in a home is risky; but with no risk, there is no reward. Studies conducted by the Federal Reserve have shown that owning can provide a net worth that is from several to hundreds of times higher than that of renters. When you own, improving your home increases its value. When you rent, improvements only increase value for your landlord. Ultimately, paying rent will only get you a roof over your head. There are virtually no benefits that paying rent offers beyond having a living space. Further, making mortgage payments on time helps build your equity and credit score.

 

Tax Deduction

Some people benefit from claiming deductions for mortgage interest and real estate taxes. Others find a standard deduction more valuable. Even if you exclude the tax benefit, the real cost of owning can still be less than renting.

 

Stability and Freedom

When you move into a home, it is something that is truly yours. You are free to decorate your environment as you please without worrying about restrictions from your landlord. By settling into a home, you will likely find yourself more involved in the community, whether that is through volunteering, participating in your home owners association, or simply establishing relationships with your neighbors. Renting is typically less stable than home-ownership and relationships with those around you tend to be avoided. Payments for a mortgage can be consistent with a fixed-rate mortgage, making the payment process easier.

 

So, with the cost of rent on the rise, finally taking that leap into home-ownership may be well within your means and could prove to be beneficial. Consult with a loan officer in your area today and we can answer any questions you may have!

If you are thinking about home-ownership, you may want to check out our blog on Inlanta’s Home Loan Roadmap.

 

OUR MISSION STATEMENT

Our mission is to be the home financing partner that you trust to serve your family, friends, and community. Through our family of dedicated mortgage professionals, our commitment is to deliver an exceptional experience. Our unwavering dedication to integrity, honesty, and ethics is the foundation of all of our relationships.

ABOUT INLANTA MORTGAGE

Headquartered in Brookfield, Wisconsin, Inlanta Mortgage is a growing mortgage banking firm committed to quality mortgage lending, ethical operations and strong customer service.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is an agency approved lender for Freddie Mac and Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs.

Inlanta Mortgage was recently named a Top Workplace for a third time in 2015. Inlanta has also received the Platinum Million Dollar USDA Lender Award and has been recognized as a Top Mortgage Employer by National Mortgage Professional and a Top 100 Mortgage Banking Company and 100 Best Mortgage Companies to Work For by Mortgage Executive Magazine.

Inlanta Mortgage, Inc. NMLS #1016.

Buying Better Than Renting

Buy-or-rent

According to Trulia’s blog, buying a home is still cheaper than renting a home in all of the 100 largest metro areas in America.

Buying Better Than Renting

Trulia’s Chief Economist, Jed Kolko, says homeownership is 35% cheaper than renting in all of our nation’s largest metro areas. How can this be? Put simply, even if mortgage rates are rising, they are still very low historically. Home prices are rising too – but only after hitting devastating lows. The truth is that prospective borrowers are facing increasing rates, prices and pressure – especially when you consider that buying was 45% cheaper than renting one short year ago.

Making Rent or Buy Decisions

Renting versus buying decisions depend on where you live, what mortgage rate is available, the tax bracket you fall into, how long you plan to stay in your home and more. Use Trulia’s Rent vs. Buy interactive map to see how variations in mortgage rates and tax brackets may alter a prospective home buyer’s decision. Trulia factors in total costs of homeownership into its calculations – including taxes, insurance, maintenance, etc.

More Than Numbers

Buying a home is more than just crunching numbers. Home ownership is an American rite of passage. Visit our blog for more information for First Time Home Buyers.

Low Down Payment Lending Options

According to a recently released report by the Federal Reserve, 48% of home purchases were made via low down payment options available through the Department of Veterans Affairs and the Federal Housing Administration. Inlanta Mortgage is pleased to offer both FHA and VA mortgage loans. Inlanta Mortgage also offers USDA rural development loans to those who meet eligibility requirements. USDA, VA, and FHA loans are well suited to those who do not have 20% down payment. Use our branch locator to find an Inlanta Mortgage loan officer near you or apply online now.

About Inlanta Mortgage – Celebrating 20 Years

2013 marks Inlanta Mortgage’s  20th Anniversary! We are looking forward to the next 20 years. Our mission is to be the home financing partner that you trust to serve your family, friends and community. Through our family of dedicated mortgage professionals our commitment is to deliver an exceptional experience. Our unwavering dedication to integrity, honesty and ethics is the foundation of all of our relationships.

Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is an agency approved lender for Fannie Mae, FHA/VA, FHA 203K and USDA. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.

Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS #1016. Inlanta Mortgage is proud to be named to the Scotsman Guide Top Mortgage Lenders 2012 list and to be among the Top 100 Mortgage Banking Companies in America in 2012 and Fastest Growing Milwaukee-Area Firms.