Why People Go for Homeownership Rather Than Renting These Days
Your decision to rent or buy a house will depend on your lifestyle and current financial condition. It’s a decision you’ll probably make with the help of a financing expert to know the best mortgage loan rate. If you are not sure if owning a house in Salt Lake City or any other location is best for you, consider the following important benefits: 1. Money That will be Present in the Future
You hand over money to your landlord when you rent, essentially building your landlord’s equity. It is money you’re not going to see again. However, if you make a mortgage disbursement, you are basically building your own equity.
Paying the mortgage may feel like making a lease instalment, but paying that amount will give you more control of your property — something you can’t get from a lease check.
- Lower Interest Rates
Home loan interest rates have been on a slight decrease in previous years. In January of 2011, for instance, the normal interest rate on a 30-year home loan was almost 4.81%. On January 2016, it dropped to around 3.88%. It may not seem like a significant difference, but it can mean spending over $100 less on your monthly mortgage payment.
You have to save money for the down payment. But with lower mortgage interest rates today, people consider buying more practical than ever.
- Tax Benefits
The U.S. government promotes homeownership through tax policy. Your property taxes and mortgage interest are deductible when you own your house. This is to provide convenience to people, so they can live their preferred and better life.
- Stable Monthly Disbursements
You are expected to pay a certain amount on your mortgage each month for the entire duration of the loan if you opt into a fixed-rate mortgage payment plan. On the other hand, you never know if your landlord might decide to raise rental rates if you choose to rent. At the end of the day, buying a house gives you more leverage over how much you spend per month for rent.
- Making Your Space Truly Yours
This is probably one of the first homeownership benefits you had in mind. If you lease the house, it can be hard to personalize your space and make it feel like a home. But you can choose the color, the curtains, the window treatments, the fixtures, the landscaping, and much more when you buy a home. Therefore, if you live in your own house, you are not bound by the rules and schedule of a property management company. Basically, owning a house makes you feel more at home.
You have narrowed down the search to find your dream home, and you are now searching for the best mortgage deal. One way to find the best one is to meet with a mortgage broker who can guide you through the borrowing process. Learn as much as you can about the services, the information level, communication style, and customer approach of the broker.
Meta Title: 5 Reasons Buying a House is Better Than Renting
Meta Description: Home loan interest rates have been on a slight decrease in the previous years. If you want to buy a house through financing, you need to know the best mortgage rate in your location.