Owning a home offers many benefits. Especially when compared to renting. Below are a few of the benefits you should consider when deciding if you want to keep flushing money down the drain by paying rent or if you’re ready to step up to the plate and buy a home of your own.
Homeownership Can Boost Your Credit
A home mortgage is a long-term commitment. You’re agreeing to pay a set amount of money each month over the course of 15, 20, or even 30 years. The longer you continue to make your mortgage payments on time each month, the higher your credit score will grow. More importantly, your home provides a lengthy credit history that helps your credit in other ways as well.
Owning Gives You Your Own Space
When you rent a home, it is ultimately someone else’s space. You have access to that home for as long as they are willing to rent it to you. However, if they choose to sell the home or decline to renew your lease, then you will have to find a new place to live. Renting makes permanence more difficult. Plus, when it’s your own space, you can make changes to suit your needs and interests. This is rarely the case when you’re renting from someone else.
Buying a Home Provides You With a Nest Egg
Of all investments you’re likely to make, real estate is one that is most likely to provide a positive return on your investment. In other words, the longer you remain in your home, the more equity you build. Then, when you sell the home, you are usually able to get more out of your money than what you paid to buy your home. This is money you can invest in future homes, retirement plans, or more. The longer you hold on to your home, the better this particular investment will pay off for you. Think of your home as your long-term investment plan.
Costs of Ownership are Investments in the Future
When you’re renting, the rent you pay each month provides money for someone else’s future. When you buy your own home, the money you pay each month is an investment in your own future. However, you must be prepared for the real costs of ownership that go beyond the monthly mortgage. This includes the costs of replacing roofs, repairing furnaces, plumbing repairs, and more. On the upside, you don’t have to wait until your landlord can get around to doing it. At the same time, it is now your financial responsibility to make it happen.
Are you ready to escape the rent roller coaster and the uncertainty it brings? Mid America Mortgage can help you with the financing you need to make your perfect dream home your own. Contact us today to learn how we can help.