Every person dreams of owning a beautiful home at some point in their life. This dream has been made valid by the different financing options available to home buyers today.
However, not every person has the financial muscle to pay for a house either in cash or through a mortgage loan. This might be a result of multiple reasons, but the main one is their financial position and ability.
If you cannot buy, then you are left with no other option but to rent a house. Of course, you do not want to be homeless. But did you know that there are many benefits of owning a home compared to renting? Here are some of them;
1. Rents are Getting More Expensive
The amount of money paid for rent has been constantly growing in most countries across the globe in the past few years. This is not going to stop anytime soon. Research even shows that median incomes have been growing slowly compared to the rate at which rent has increased.
What does this reflect on people paying mortgages for their homes? Well, the cost of living in a city like New York is very high due to rental prices. There will not be much difference between you and a person paying a monthly mortgage for their own house in the same city.
However, the difference will be clear after the homeowner finishes repaying their mortgage loan. At that time, this person will fully own the home while the one renting will own none. They can even choose to rent out their home and get higher rent from the house, adding to their sources of income.
2. Some Lenders Take as Little as Zero Down Payment
Well, most people would argue that this sounds too good and they should run away from such lenders because cheap is expensive. Well, the truth is that some lenders might take as little as zero down payment for a mortgage.
Some government assistance programs and loan programs allow some home buyers to qualify for a mortgage without having to pay any down payment. However, you need to keep in mind that this is different from the closing costs that you have to pay.
These loan programs might vary from one lender to another. However, if you are keen on zero down payment, you can look at loans offered for military spouses, veterans, and active-duty military personnel, among others.
3. Interest Rates are at their Lowest
If you are serious about owning a home, then now is the best time because of the low-interest rates being offered by lenders. Even though this might look like a very small difference in your rates, it will be vital in determining the amount of money you will pay every month.
You should be looking at homes that you can buy now instead of renting an uptown apartment that will cost you a lot of money. Imagine getting a thirty-year deal today that allows you to pay lower than the average amount a renting person pays!
This shows that the benefits of owning a home beat those of renting one at the current interest rates.
4. Owning a Home is a Long Term Investment
If you are renting your home, then you have to pay your landlord at the end of every month. This leaves you with nothing to show for it, apart from the fact that you have a roof over your head.
On the other hand, owning a home is a form of investment that works as a way of saving money by force. Even if you have a home with over twenty years of mortgage where you make repayments every month, the home will belong to you after the repayment.
Paying rent for over twenty years will not leave you with any house of your own. You can even sell your current home if you want to even when under a mortgage. This is made possible by options such as SoFi home refinance that pay off your old mortgage with a new one.
5. Fixed Monthly Payments
If you talk to most people living in rental homes, you will realize that one of the things they do not like is rent rising from time to time. This, without a doubt, does not matter whether your source of income remains the same or not.
On the other hand, when buying a home, you have the option of choosing a fixed-rate mortgage. With this option, the amount of money you pay every month will never change, throughout the loan term.
In addition, you will keep your home as long as you do not default on payments. This creates a sense of stability compared to a person renting a home.
With all these benefits, why should you be renting when you can afford to apply for a mortgage to finance the purchase of your home?
Article Submitted By Community Writer
