Renting a house or apartment makes having your own place easy. Your only commitment is what’s written in the lease agreement. Renting vs owning may be an easy choice if you’re looking for more flexibility.
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?
Renting vs owning: Five benefits of owning
- 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. First time home buyers could receive assistance and pay no money down.
If you’re ready to buy, get preapproved so you have more bargaining power when shopping.
Learn more or get preapproved today
