Distinct Benefits of Homeownership Over Renting
Have you been renting for your living arrangements for many years, but are now considering purchasing your own home? You may be unsure whether this is the right move, or whether the benefits of purchasing a home outweigh the financial risks and steps you’ll need to take to do so.
At Primary Residential Mortgage, we’re here to help. We provide a huge range of home loan options to all our clients, including first-time buyers who need the right program to make their purchase work financially. For those who are still on the fence about this decision, here are four of the most specific benefits that come with homeownership compared to renting.
Debt and Savings
When you switch from a rental situation into one where you own your own home, the debt lever reverses itself in one fell swoop. Before, your monthly rent contributions were going toward paying down your landlord’s mortgage (with a little extra on top for their trouble); when you buy a home, you’re paying off your own as you begin to own more and more of the house with each payment.
When you finish a rental lease, you might get your security deposit back depending on the state of the home; when you finish a mortgage, you own the home outright. This means you are building value in an asset, one that allows you to build a much more robust savings plan for the rest of your life.
Building Equity
Speaking of building value, it’s another huge part of the benefits of owning a house. With each payment you make toward your mortgage, you own another percentage of the home – this is known as equity, which can be used in several ways. For instance, you can borrow against home equity in the case of an emergency medical bill or a need to pay child tuition.
Stability
Apart from rare renters who live in rent-controlled areas, rent is likely to increase significantly over the years. But if you buy a home with a fixed-rate mortgage, your monthly mortgage payment will be stable throughout the life of the loan. This allows you to plan and build your finances in several ways where you would not have had this level of certainty before.
Freedom
And finally, tenants in a rental home are limited in what they can do with the building and surroundings. There may be pet restrictions, for instance, and there are almost certainly limitations on remodeling or otherwise changing the home’s layout. When you buy, however, all these restrictions are gone – you can bring in whatever pets you like and make your own choices on home modeling, floor plans and any other related area.
For more on the numerous benefits of owning a home, or for information on any of our mortgage rates or services, speak to the staff at Primary Residential Mortgage today.
*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.
