Many people across this country are wrestling with their housing loan payments right now and the economy is not getting any better at the moment. A fair number of people are now considering the pros and cons of renting versus owning their own home. In many parts of the country home rental costs are almost 50% less than it would cost to buy a home with a traditional 30 year mortgage. People who rent their home do not often have to pay property taxes, though some areas do have a renter’s tax. People who rent don’t have to rely on finding new ways to sell their house for less than it’s worth. Renters do not get to benefit from growing home prices but they also don’t have to worry about trying to sell a house that’s worth less than the mortgage. When you are a renter then you don’t usually have to pay for your house’s maintenance other than a few standard home repairs. Most rental homes have a landlord that handles large home improvements and maintenance problems. While many cities have rental laws, sometimes landlords can evict residents for no valid reason. When you rent your house then you must remember that you are not building any kind of value in your home. Renters, unfortunately, usually have limited control over their own home’s upgrade projects. Owning a house often is usually a more expensive decision in the beginning. The lengthy process of getting a home loan is difficult for some people in this economy. Home owners usually have more flexibility to upgrade their homes than renters, but home owners obviously have to finance their home upgrades. On the plus side, some home repairs can give you a big tax credit. The choice to buy or rent a home is mostly a personal one. Both renting and owning a home come with obvious challenges and advantages. Owning a home may allow you to build up value in your house while renting might put more cash in your bank account on a regular basis. Don’t think you can afford to leave your rental and buy a house of your own due to a low credit score? There are actually a number of things you can do to get a home loan with bad credit at a fair rate. Visit our site to discover more!
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Owning your own home is part of the American Dream. It is a status symbol as well as a security. It is an investment into your future as well as a comfort. There are several reasons that you should consider for making your home purchase now. 1. Interest rates are low. They are hovering around lows not seen for decades. Buying a home at this time could be the perfect storm – low interest rates and low prices. Your monthly mortgage payments could be lower than the rent you are paying. You also can still get FHA financing which requires a very low down payment. If rates rise you might get priced out of the market for many years. 2. The real estate market might be at the bottom. Everyone has an opinion but no one knows for sure where the market is headed. Logic tells you that prices may be at the bottom and will perhaps stay there for a little while until the country recovers from the current recession. Don’t bother trying to time the real estate market to the day or month. If your time horizon for owning a home is five years or more than this is a good time to be a home buyer. 3. Do you really want to be a renter forever. Forget all of the financial aspects of owning a home for a minute. Isn’t it just nice to live in a home or condo that you own? You can decide what colors to pain the walls. You can decide if you want to change out the carpet. You get to decide if you want to remodel the bathroom. None of these things requires the approval of your landlord. Doesn’t that just feel good? 4. Build Equity. When you purchase a home or property you are creating wealth. As home values rise and mortgage payments are made, the value of your home increases. The difference between what the home is worth and what is owed on the mortgage is the available equity. As your equity builds so does your wealth. Assume you purchased a 100k home with a 15 year mortgage. Home values during that period went up anywhere from 1-5% a year during that fifteen years. When your mortgage is paid off you will now own a property that is worth anywhere from 120-175k, clear and free. You have just increased your net worth by that amount. Not only have your enjoyed your home during this period, you have created wealth by simply taking advantage of purchasing a home at the right time. 5. Improve your credit. When you get a mortgage and pay on time your credit score will improve. Homeowners are considered to be a lower risk and are typically given a higher credit score. A better score means that you can borrow money more easily and at lower rates. There may never be another time like this where prices and interest rates are low. This window of opportunity may disappear. I don’t see rampant speculation anytime soon that will make homes unaffordable again however interest could and probably will rise. Consider making a home purchase today. Marc Rasmussen sells Bird Key real estate
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