If you’re currently renting but considering buying a home, you need to be able to afford more than just your house payment. There are several pros and cons to consider.
Purchasing your home offers financial advantages.
- Home equity. Buying a home means that, over time, you may qualify for a home equity loan. Home equity come in two forms, either in a fixed-term loan or in lines of credit. Learn more about how owning a home can present an alternative to personal loans with home equity.
- Tax deductions. When you purchase a home and pay interest on the mortgage, that interest is tax-deductible. Real estate taxes are deductible as well.
- Ownership. When you buy a house, you can make whatever changes you’d like — painting the walls, building additions, having pets, etc.
There are also extra costs to owning a home that renters don’t face.
- Homeowner’s insurance. You’ll want to purchase insurance for your home in case any unexpected disaster occurs.
- Property taxes. When you own your home as opposed to renting it, you are responsible for paying property taxes. For renters, landlords cover those costs
- Maintenance. Houses require regular upkeep, and if you want to keep yours in good shape, you’re going to have to pay for regular maintenance.
Buying a home means that you’ll actually have ownership over where you live, but it’s not always the best choice for everyone. Use our calculator to see if purchasing a home is right option for you. Learn more about renting versus buying a home by visiting our Mortgage Center today, or contact us to discuss your plans.