| Anyone who pays a large rent check to a landlord | | | | three. This means that if you plan to stay in the same |
| every month should review whether or not their | | | | place for at least several years, you can save money |
| money would be better spent as a mortgage | | | | by owning a home rather than renting. |
| payment. With record low interest rates and a large | | | | With home ownership, you steadily build equity in your |
| selection of homes for sale, the possibility for home | | | | property. This equity is an asset that can provide you |
| ownership in America has never been better. | | | | later with financial security as well as the ability to |
| Consider the follow points before making a call to | | | | borrow against it for things like home improvements, |
| engage the services of a real estate agent. | | | | college tuition payments for your kids, or even for the |
| Taxes. Monthly mortgage payments always include a | | | | down payment for your next home. Over time, as the |
| portion for interest and principal on the loan. They also | | | | interest portion of your loan payments decrease, the |
| often include portions for taxes and insurance. Federal | | | | principal portion increases. Since the principal becomes |
| income tax guidelines allow homeowners to deduct all | | | | your equity, this means that your asset grows more |
| of your interest and tax payments. This provides | | | | quickly over time. |
| significant tax advantages to you. | | | | Lifestyle. There are some non-financial factors to |
| In order to claim the tax benefits of owning a home, | | | | consider, too. What is your lifestyle like? Home |
| you have to itemize your deductions on your federal | | | | ownership requires some stability. If your job requires |
| income tax return. And while most people simply claim | | | | you to move fairly frequently, renting may be a better |
| the standard deduction, itemizing deductions will usually | | | | option for you. On the other hand, home ownership |
| save you money. By deducting interest and tax | | | | provides some freedoms that renting can't: you can do |
| payments on your mortgage, your savings will be | | | | as you wish with your property. You can change the |
| considerable. | | | | decor and landscaping whenever you like. You are not |
| Purchasing a home sometimes requires some initial | | | | dependent upon the landlord's permission to improve |
| cash for costs like a down payment, earnest money | | | | the property. And you don't have to wait for the |
| and closing costs. Some of these costs, however, can | | | | landlord to get around to repairing any problems. |
| be folded in to your mortgage. Owning a home | | | | Part of the American Dream is to own a piece of |
| requires regular maintenance of the property, so you | | | | property and grow and develop it over time. Home |
| will need to budget for this. Still, the total monthly costs | | | | ownership makes this dream possible. It also makes |
| may be similar to what you are currently paying for | | | | you a very special member of your community since, |
| rent. | | | | as an owner, you are tangibly investing in the |
| Studies by Ginnie Mae (the Government National | | | | community. It provides you with a sense of belonging in |
| Mortgage Association) state that home ownership | | | | a way that renting can not. |
| usually becomes less expensive than renting in year | | | | |