Several people have been asking me about the benefits of being a homeowner lately. If you’re currently paying rent and have been for a while now, I'd like to make you aware of the specific benefits that home buying offers. Here are seven of them:
1. You're paying your own mortgage—not somebody else’s. When you pay rent, you're helping your landlord line his/her pockets and paying off his/her mortgage. When you buy your own home, you’re paying your own mortgage and benefiting from any equity it receives.
2. It isn't as expensive as you think. In most states, it’s actually more expensive to rent a home than it is to buy one.
3. There are down payment options for everyone. You don’t need 20% for a down payment. In fact, hardly anybody puts that much down these days. There are plenty of different down payment options available, including 0% down on USDA and VA loans, and 3.5% down on conventional loans.
There are loan and down payment options for all budgets.
4. Interest rates are still low. Right now, interest rates are still at or near historic low levels. A 30-year fixed mortgage at 3.75% is an incredibly low rate.
5. You can do whatever you want, whenever you want. In terms of making additions or improvements to the home, you get to make this home your own. This includes having pets, repainting walls, and making home improvements. This new found freedom will be great in comparison to the landlord wanting to keep your security deposit or the hostile environment of living in your parents' basement.
6. There are different and unique loan programs for everyone. Many new and first time homebuyers are concerned about their student loan debt affecting their ability to qualify for a mortgage, but some rules have recently changed to make it easier for those with student debt to qualify for a loan.
7. Everybody is doing it. There are more new homebuyers than new renters, as signaled by the huge jump in homeownership we’ve seen over the last year after we saw record lows.
If you do have any questions or need any help buying, selling, or investing in real estate, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.