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Considerations Before Making the Move

Deciding whether to buy or rent can be difficult. Your lifestyle, financial situation and long-term plans should all factor in to your decision. Oftentimes, the amount of money you spend on rent each month ends up being as much as — or even more than — a monthly mortgage payment. If you decide to rent, your money won’t be an investment in equity. You won’t get it back if you decide to move because you’re not selling your home, and you can’t borrow against it for special purchases or emergency expenses because you’re not building equity. It’s just gone.

 

Buying may be a better choice. Purchasing a home instead of renting gives you numerous advantages, including:

Renting is a great way to set yourself up for homeownership:

Flexibility

Renting gives you time to save for a bigger down payment and make sure you’re ready for a long-term commitment.

Credit Score

Paying your bills on time improves your credit and increases your chances of being approved for a mortgage.

Job Security

Renting until you become established in your career helps you present a stable employment history when you apply for a mortgage.

Stable Income

Reaching a steadily increasing salary level while renting can positively impact how lenders perceive your ability to repay a home loan.

When the time comes, buying a home is totally worth it:

Predictability

With a fixed rate mortgage, you’ll know what your payment toward the principal balance will be for the life of the loan.

Building Equity

Many homes increase in value as the mortgage debt goes down, which adds to the amount of equity and your personal net worth.

Tax Benefits

If you itemize your deductions on your income taxes, you can deduct the mortgage interest and property taxes you paid.*

Ownership

When your mortgage loan is paid off, you can take pride in the fact that your home is yours and you honored your financial obligation.

*Consult a tax advisor for further information.

 

If you’re tired of renting and want to start investing in your future by buying a home, but are unsure if it will make financial sense, contact us for a more in-depth calculation based on your specific information.

Related Information

At Cal Point Mortgage, we can help guide you through the process towards getting that new set of keys!

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