Time to Own: 3 Reasons You Should Get a Mortgage Instead of Renting
Monday, January 15, 2018, 6:00 PM | Leave Comment
Many people lease an apartment, condo or single-family home for many years before seriously considering buying a home.
The mere thought of applying for a mortgage and committing to one property for a long period of time can seem overwhelming and even intimidating.
However, there are considerable benefits that you can enjoy when you give up your rental housing and use a mortgage to buy a new home of your own.
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Low Interest Rates
Interest rates have been low for years, but they may not remain at such low levels indefinitely.
If you want to take advantage of a lower interest rate for your home buying plans, you should act now while you know the low rates are available.
Remember that a low interest rate could generate a low housing payment, and it could also help you to qualify for a mortgage on a more expensive home.
If you wait until after interest rates have increased, you may not be able to stretch your buying dollar as significantly.
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Tax Deductions
When you own your home, you can deduct several expenses associated with ownership.
For example, property taxes and mortgage interest can be deducted in most cases. These can decrease the amount of money that you have to pay in federal taxes each year by a substantial amount.
These deductions are not available if you rent a home.
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Locked-In Housing Costs
Another excellent recent to consider applying for a mortgage rather than renewing a lease on a rental home relates to housing costs.
If you have been renting for more than a few years, you may be well aware of the fact that rental rates may rise at each renewal date.
In some cases, the rent escalation can be significant and even burdensome to your finances.
When you apply for a fixed term mortgage loan, your payment will be locked in for the entire life of your loan until the debt is paid off. This means that the payment amount will not increase in five or 10 years or longer unless you refinance the mortgage.
If you are interested in learning more about the real estate sales options available, working with a realty company is an excellent idea. Your real estate agency can help you to locate homes that are in a desirable area and that are within your price range. By analyzing the for-sale listings, you may be able to determine if buying right now is ideal for your plans.
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