Thinking about purchasing a home? There are some great benefits to owning vs. renting, here are some of them:
1. Stability of monthly payment Most of the time when you own people finance their purchase on a 30 year fixed rate loan...this means you'll know what your monthly payment is for the next 30 years. The only things that could change are taxes (if they re-assess) which they don't do often. Homeowners insurance could creep up but other than that you have stability! Your landlord can raise the rent at the end of every lease term if they want!
2. Stability of Living Situation What happens if your landlord decides to sell? You could have to find a new place to live.
3. Tax benefits You are able to write off the monthly mortgage interest on your taxes. Here's how it works (it's more beneficial in the beginning years of your mortgage because you pay more of the mortgage interest and less of the principal)...say you made $60,000 dollars last year, you paid $10,000 in mortgage interest. You deduct that from your annual wage $60,000-$10,000=$50,000. Your tax bracket then changes! Which could save you a lot of money!
4. Bundling Discounts on Insurance When you bundle your extisting insurance policies with your homeowners insurance you save money!
5. Buying is cheaper than renting in our area This isn't true everywhere but it definitely is for Northern Colorado.
6. Building Equity/ Long Term Savings Plan When you own your home, it's like a long term savings account helping to build wealth
7. It's Yours! You get to do what you want with the place! Paint those walls, install that Koi Pond and finish that basement!
Author:Sarah Rowan Phone: 970-397-5774 Dated: December 1st 2014 Views: 409 About Sarah: Sarah was a licensed real estate agent for 10 years before transitioning into the mortgage industry ...
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