Title:
Home Mortgage
Loan - Should I Rent Or Own A Home
Word Count:
312
Summary:
Owning a home
means more responsibilities, but with a host of rewards, including:
Investment value
Monthly mortgage payments can be comparable to rent - or even lower - and
you're building equity in an investment that can increase in value. This equity
can be used to get money saving home equity loans or as a down payment on your
next home.
Tax-deductible interest
Rent is usually not tax-deductible, but mortgage interest (including points) on
your home usually is. The...
Keywords:
loan, mortgage,
home mortgage
Article Body:
Owning a home
means more responsibilities, but with a host of rewards, including:
Investment value
Monthly mortgage payments can be comparable to rent - or even lower - and
you're building equity in an investment that can increase in value. This equity
can be used to get money saving home equity loans or as a down payment on your
next home.
Tax-deductible interest
Rent is usually not tax-deductible, but mortgage interest (including points) on
your home usually is. The mortgage interest deduction can dramatically reduce
your income taxes. Visit the IRS web site at irs.gov for more information about
deductibility.
Stable payments
When it's time for renter's leases to renew, they may be hit with steep rental
rate increases. A fixed-rate mortgage can banish unwelcome dents to your
budget. A fixed-adjustable mortgage has stable payments from three to seven
years, but starts at a lower interest rate and monthly payment. Your monthly
mortgage amount, excluding property taxes and insurance, will be the same for
as long as your interest rate is fixed. As your salary increases, payments
become more affordable.
Freedom to be creative
When you own a home, you can say good-bye to the stale white walls and limited
storage space of most rental property. Bring on the paint, decks, customized
closets … homeownership can open up a whole new world and improve your quality
of life.
If you're unsure about your job or where you want to live, renting may be the
way to go. But if you're tired of the renting lifestyle and ready to accept the
responsibilities of homeownership, it makes sense to buy sooner than later.
Even if the mortgage payment is more than your current rent, it's worth
scrimping for the short term to enjoy the long-term benefits.
For more information about home loans, visit our website and learn more about
financing options to purchase your first home.