*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Now, I know what you're thinking. "Typical mortgage guy, telling me to buy a home when I'm more comfortable renting."
Look, I get it.
Renting might be a great option for a while, and Heaven knows that my own life has been blessed by renting places to live over the last few years.
What if buying a home could not only benefit you now, but in the long-term future as well?
Renting out a place to live can have lots of great things about it. You might not have to take care of the yard, you might not have to pay for upkeep or broken appliances, and you may even feel like it gives you the option to save up to buy a home in the future.
While all of these things are amazing qualities that could potentially come with renting, it might not tell you the whole story.
By buying a home with a fixed rate mortgage, those payments don't change throughout the life of the loan. If interest rates go down, you can always refinance and have lower monthly payments, but once you sign the closing documents, your monthly payment will stay your monthly payment until you pay off the home.
When renting, your rent payments can fluctuate from month-to-month, quarter-to-quarter, or year-to-year. This depends on the landlord and situation that you find yourself in, but generally speaking, they'll raise prices on you at least once during your stay. For instance, this year, many landlords raised rent by over $500 per month because of the market shift and inflation. If they've got a fixed rate loan on the home you're renting out, there's a good chance that you've just given them $500 extra dollars (per month) to go into their pocket. That's an extra $6,000 per year!
This not only means that you're paying more per month, but chances are good that you're paying someone else's mortgage. Why pay for someone else's home, when you could be paying for your own? You can build your own equity, have tax benefits, and provide a place of stability for your family for years to come.
Due to laws, I'm not allowed to say much about tax benefits, but please speak with tax specialist and they'll explain the ways that owning a home can help you with your taxes too!
Lastly, stability. At the blink of an eye, your landlord could decide to sell the property that you're renting from them. At a moments notice, you could find yourself looking for a new home to move your family into. Uprooting and moving family could cause major stress, both for a husband and wife, but also for kids. Struggles making friends, new jobs, new schools, and new areas of unfamiliarity.
By buying your own home, you can stay for as long as you want. By making your monthly mortgage payments, you are building equity in your home and giving your family the opportunity to find stability in where they live.
For more information on the benefits of buying versus renting, please contact me today.
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Brayden Ramsay NMLS #1997195
Momentum Loans NMLS #1606597
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