Mortgage Lending Library
Renting Vs. Buying
Having signed on a new home loan, you are entitled to a wide range of home owner benefits millions are currently sharing. In the classic battle of heavyweights “home owner” vs. “renter” home ownership has achieved a public consensus as being the more strategical of the two. Let's take a look at some home owner benefits and what one can seek to gain from them.
One home owner benefit is the ability to earn equity on your home. Early mortgage payments are used to pay off mostly interest, with time passing by before your money goes towards paying off the mortgage balance. By chipping away at the principal, you are gaining equity in your home's value. If your home were to increase in value through the real estate concept of appreciation (i.e. due to a newly built mall in the area), it leads to even more equity. Equity entitles you to sell your home at a price way above what you paid for it later on and epitomizes the idea of a solid investment.
Another home owner benefit is the tax advantages gained. Owning a home entitles you to take off mortgage interest payments from your income taxes, which leads to savings. This is especially crucial during the early stages of home owner benefit is consistent monthly mortgage payments. By applying for a fixed rate mortgage, the same principal and interest will be paid each month for the length of your loan (barring any property or insurance tax increases.) Renting an apartment or home will subject you to the landlord's decision making who could raise the rent at any time their lease agreements.
The wide range of home owner benefits today speaks volumes over countless people buying homes today to secure their futures.