When Deciding To Rent Or Own Your Own Home
November 21, 2024
While renting offers relocation flexibility and lower upfront costs, homeownership provides a wealth of financial and personal benefits.
Depending on circumstances, owning can be financially better over the long run than renting. What should renters know about owning their own home instead of renting?
- Potential Equity Growth: Every mortgage payment means more potential equity in your home. The longer you pay your mortgage, the more equity you build.
- Tax Advantages: Depending on current tax law, homeowners can often deduct mortgage interest and property taxes. Check with a tax professional to learn more.
- Inflation Hedge: Real estate is generally considered a good hedge against inflation.
- Ability to Refinance: Some will refinance for a lower interest rate, others may refinance to cash out their home equity. The choice is yours.
Personalization and Freedom: One of the greatest joys of homeownership is the ability to personalize your space. Want to paint the walls a vibrant color? Knock down a wall to create an open-concept living area? When you rent, these options are less open to you.
Stability and Roots: Owning a home provides stability and permanence. You're not subject to lease renewals or rent increases, and you can truly settle into your local community.
Privacy and Space: Enjoy the peace of your backyard, create a home office tailored to your needs, or relish the freedom to spread out without sharing walls with neighbors.
How To Decide?
The choice between renting and owning is a personal one. Factors like your financial situation, lifestyle, and financial goals are important to remember when making decisions about renting. Essential questions about renting versus owning include, “How long do I plan to stay?” and “Am I truly ready for the responsibilities of owning a home?”
Renting may offer some a more flexible lifestyle, but homeownership means adding potential financial and personal benefits to your financial position.
FHA Loan Articles
April 16, 2025There are smart uses for cash-out refinancing loan proceeds and uses for that money that may work against the borrower. We examine some of those choices below, starting with using an FHA cash-out refinance for investment purposes. Is this a good idea?
April 15, 2025House hunters sometimes face a curveball when the appraisal for a home they want to buy with an FHA mortgage is lower than the offer. Is this a deal-breaker? Believe it or not, it isn't the end of the road. A low appraisal can sometimes be just a bump in the road. In other cases, you may wish to walk away from the deal. Here's your game plan to navigate this situation...
April 14, 2025 Buying a home with an FHA loan can be an exciting and achievable goal. This quick quiz helps you gauge your understanding of FHA loans and what it takes to make a winning offer on your new dream home. Take a few moments to answer the questions and see how prepared you are to navigate this crucial stage of your home-buying journey.
March 31, 2025Is 2025 the right year for you to consider an FHA streamline refinance? These mortgages are for those who want a lower interest rate, a lower monthly payment, or to move out of an adjustable-rate mortgage and into a fixed-rate loan. We examine some of the critical features of FHA streamline refinances.
March 27, 2025Did you know there are FHA loans that let house hunters buy multi-family properties such as duplexes and triplexes? FHA rules for these transactions is found in HUD 4000.1, including owner-occupancy, require that one unit serve as the borrower’s primary residence. Some house hunters ask why this rule exists. Some believe the rule serves as a lender risk mitigation strategy.
