Renting VS. Buying: The REAL DEAL

Have you been renting and considering purchasing a new home but not sure on where to turn? It is easy to get into a routine and not take that leap of becoming a home owner. But honestly, if you look at today’s interest rates you would really be doing yourself a favor by purchasing. Mortgage rates are back in the 3s and there's an argument to be made that there's no better time to buy a home than right now. Affordability is high, low-down payment loans remain readily available, and home prices continue to ratchet higher -- as do rents in many U.S. markets. However, because buying your first home will likely be the largest financial commitment you've made in your life so far, it's in your best interest to weigh the pros and cons of homeownership; and there are both. Yet, mortgage rates are currently super low, which has lowered the cost of a monthly mortgage. In many markets, it's now cheaper to pay on a loan than to pay monthly rent to a landlord. This is especially true in cities such as San Francisco and Seattle where rents are rising faster than wages. Renting can give you flexibility, but homeownership can give you wealth. Which is more important to you? Buying and owning a home is the essence of "The American Dream". Each month, your housing payments go towards owning your home instead of renting it; building your personal wealth and assets instead of someone else's. History has shown that homeownership is a clear path to wealth-building, with homeowners boasting net worths which are multiples higher than the net worths of renters. This happens because renter "own nothing" while living in a home. A homeowner, by contrast, owns the home and, as the home's value changes, those changes are bestowed upon the owner. Historically, real estate has increased in value nationwide. There's no guarantee that values will continue to rise, but in the majority of U.S. markets, it's likely over the long-term. So, if you buy a home for $250,000 -- regardless of your mortgage! -- and that home's value rises to $300,000, you have accumulated $50,000 in additional net worth. Renters can't make that same claim. Owning a home can anchor a household, as well, offering stability and predictability to life. When you own your own home, there's no landlord to give you "30 days notice", after all. Then, there are the tax benefits to consider. For homeowners who itemize deductions on their federal tax returns, owning a home grants access to multiple tax breaks, including the monies spent on mortgage interest each year and the monies paid in real estate taxes. Still trying to consider between renting and buying? Make a list of the pros and cons that you can thing of between the two and then make an educated decision based upon what is best for you and your family. Have mortgage questions or wondering how much mortgage you can afford? Contact the local Woodlands, TX Mortgage Expert Steve Head, President, Owner and Broker for Texas Premier Mortgage since 2006. His expertise in the current market has helped thousands of homeowners make their dreams come true. Check out the website at www.txpremiermortgage.com, or give him a call at 281-907-6401 extension 100.