Renting a house or apartment makes having your own place easy. Your only commitment is what’s written in the lease agreement.
Every month you make a rent payment and that’s it. The money leaves your account with no real added benefit to you. What happens when you own your home?
Five benefits of owning vs. renting
- Your investment appreciates: Home prices generally increase in value by 3.9 percent each year. If you buy for $200,000 today, your home might be worth $233,073 in five years.
- You build equity: When you subtract your mortgage balance from your home’s market value, that’s the cash you’ll pocket when you sell – known as home equity.
- You can tap into cash: You can secure lower-rate home equity loans for home improvements, consolidating high-interest debt or anything else.
- Your payments become stable: For the most part, your monthly mortgage payment will stay consistent. You won’t see a surprise 50 percent increase like some renters do.
- Your credit score increases: Did you know paying your rent on time doesn’t build credit? Making your mortgage payment does.
Your mortgage advice experts
Buying a home is a big step in life. If you’re not ready, that’s okay. We’re here to help when you are.
Come to us when you need help understanding how much of a down payment you need or what type of mortgage is best for your situation. Make sure to ask us about our first-time borrower program.
If you’re ready to buy, get preapproved so you have more bargaining power when shopping.
Learn more or get preapproved today
