It’s spring and the beginning of the traditional homebuying season! Are you considering a new home purchase? 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 nine most beneficial reasons to buy instead of rent:
1. Tax Deduction Benefit – Did you know there are deductions you can claim when it comes to your home mortgage? Any interest paid on your mortgage can reduce your taxable income. 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 deduction afforded to home owners.
2. Aesthetics – Owning a home gives you the opportunity to make any changes without worrying about what your landlord would say. You can paint rooms a bright new color, change old carpeting to hardwood floors or even makeover your bathroom into spa heaven! 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.
3. Security – When you rent, you could be forced to leave in a year if the rent goes up 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!
4. 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.
5. 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.
6. Higher Academic Achievement – According to HouseLogic, home ownership tends to bring about higher academic achievement in our children.
7. Improved Health – According to HouseLogic, homeowners and their families tend to be healthier than those families who rent.
8. Low Rates – Rates continue to hover near historic lows! Rates are hovering below 4 percent for 30-year fixed rate mortgages. According to FreddieMac, mortgage rates ten years ago were more than double what we are experiencing today!
9. Home Affordability – Home prices have fallen dramatically and will eventually begin to rise. 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. I can help you decide which is best for your specific financial situation and provide a pre-approval to aid your spring house hunting efforts, so contact me today!
Original post by Inlanta Mortgage.