Forward Bank

Even in the face of rising home prices in many areas and higher mortgage rates, it still may be a good time to purchase a home instead of continuing to spend money on rent.

1. Fluctuating Rates

Mortgage rates fluctuate. And if rates continue to edge upwards, buyers (especially first-time homebuyers) could find themselves having a more difficult time qualifying for their dream home as their monthly payment increases.

2. Unlimited Freedom

Paint the walls, update the flooring, or plant flowers in the yard! Unlike renting, it is important to remember that owning your home brings unlimited freedom to customize your living spaces. It also brings a sense of home stability and permanence.

3. Long Term Housing Cost

As a homeowner you can more easily plan for future expenses because you know that your mortgage payment won’t change. As a renter, this is more difficult to do when monthly rents typically increase from year to year.

4. Tax Benefits

With homeownership comes the benefit of tax deductions, which you don’t get as a renter. Presently, mortgage interest and property taxes are still tax deductions. Tax deductions reduce a person’s yearly income tax liability. Speak with a tax professional to learn the tax benefits of owning a home.

5. Home Equity

Real estate appreciates in value over time. With appreciation comes an increase in a homeowner’s equity. This increased equity position gives the homeowner the ability to borrow more money against the home, funds that could be used for everything from paying for college tuition to making home improvements to buying a retirement home. The increase in equity also makes it easier to “step up” to another home because there will be more funds for a bigger down payment on the next purchase.

If you feel that owning your own home would benefit your financial future or you still have questions, our team of Mortgage Lenders are here to help.