Are you sick of renting? When is the last time you looked at your credit score? Have you recently considered the thought of owning a home? If it has been several years since you considered home ownership things have changed for the better. Gone are many of the strict mortgage restrictions and guidelines. There are currently as many low down payment programs than at any time this decade. If you are sick of sending a rent check every month you may want to consider the possibility of being a home owner.
Most homeowners have rented at some point before they take homeownership. Eventually the strict property restrictions, pet guidelines or lack of freedom lead them to look at owning. Renting can serve a purpose for the right tenants at the right time. The idea of not having to keep up on lawn maintenance, pay property taxes or replace appliances does hold some appeal. Over time the positives of home ownership replace any rental benefits. With homeownership you know your monthly mortgage payment is going to benefit you in the future. Equity building is nice but it is far from the only reason you should consider home ownership.
With every mortgage payment you make you are saving for the future. You are directly paying down your loan balance which brings you closer to owning your home free and clear. Thirty years from now may seem like an eternity but it will be here quicker than you think. When you get there you will have the security of knowing that you have options with your property. You can sell, rent or refinance all with zero balance. If you are in a career without a retirement account real estate can provide a forced savings for you.
There are also benefits you can receive in owning a home come tax time. Uncle Sam allows you to write off the interest and tax portion of your mortgage payment. The can lead to a substantial refund or a reduction in the amount of tax you owe. You may also be able to write off home improvements, refinance closing costs and other home related items. Tax benefits should be viewed as an added bonus and not the sole reason why you would consider ownership.
Interest rates are still at historically low levels. What this means is that it is possible you can get a new mortgage payment at or below your current rental amount. There are also multiple loan options that allow for as little as 3% down payment. You can get a credit either from the lender or the seller for some or all of your closing costs. Home prices have still not taken off as many predicted they would just a few years ago. There is time to get in near the basement and still see upward potential.
Renting served its purpose for many after the market collapsed. With the economy strengthening and mortgage guidelines loosening now is the time to stop renting and explore home ownership. If you haven’t thought about owning in a while you may be surprised at how many options you have.