In this weeks’s blog post, I will explain why buying is significantly better than renting. You may have wondered about this yourself. The responsibility of owning a home, and long term commitment may seem like buying is much more expensive, but I’m going to show you why that isn’t the case. 

It's very common for someone in the market for a new home to look only at the sale price .  For instance, you may be looking in a specific neighborhood for a house for sale and say ‘Why am I looking here?  We can’t afford a home for that much'  They see the sales price and get intimidated, without stopping to think about what the realized cost will be.  By “cost” we typically mean out of pocket expense.  For example, a home listing at $400,000 does not mean that is what you will spend on it.  With our wide array of loan options, and historically low interest rates available, mortgage payments now are now very comparable to current monthly rents.  .  

I've prepared a list of reasons why it's better to buy than rent

• The ability to build equity — your wealth will grow as you gain more equity

• Tax benifits — mortgage loan interest is tax deductible 

• Stabilize your payments — While your landlord can increase the rent, your mortgage payments are relatively steady if your loan has a fixed interest rate

• Have something that belongs to YOU — a home is a place where your family can live and grow, and even though you will still owe a large amount you can decorate or build onto a house the way you like

• Gain a sense of belonging— homeowners often are more in tune with their communities; it's common for homeowners to work together to provide better schools and less crime 

Here is a breakdown of the differences between renting and owning from a financial perspective:

Rent                                                              Mortgage

$2,000 per month                       $2,500 per month (PITI)

3 year total - $72,000               3 year total - $90,000

Equity - $0               Equity - $22,006

Not Tax Deductible               Mortgage interest and mortgage insurance 

                      are tax deductible

Rent can increase year over year       Principle and Interest portion of mortgage is

                      fixed and will not increase

Wouldn't you prefer to build your own equity rather your landlords? Contact me here to complete the loan process and launch your future as a home owner.