Information for all Buyers
When you are renting a house, you probably note that flexibility comes to you. It’s logical, because when you rent home, you are much more free. If you want, it’s possible to live in a city, or in a neighborhood, and all time that you live there depends of you. Also you don’t know anything about any maintenance responsibilities – all depends on your landlord.
But, for all that, exists so many great reasons to buy a house. There are some of them:
The first years after any mortgage, the biggest part of your (or of every other) mortgage payments of every month go to your loan interest.
After some time, one part of your monthly payment – this part continuously rises – start to go for reduce mortgage balance or the “principal”.
Depend of how you make payments, you start to reduce the principal and start to increase the share (or the equity) in the value of your home. And if your house rises in the price, your equity, logically, will build much faster.
Building savings or equity in your house is so necessary. It lets for many people to get lot of goals, like the retirement.
Gain the Tax Advantages
You also can to deduct property taxes and mortgage interest from your own federal income tax and from several states’ income tax. These data can mean for you good tax savings, even more in the first mortgage years, when the interest means the biggest part of the payment that you do every month.
So, after all calculations, you can see that it’s more expensive to rent a house than to buy it.
Trust to Payment Stability
Selecting fixed-rate mortgage, remember that you will pay exactly the same monthly quantity of money for all term of the your own loan. This payment, comparing it with renting, month after month will remain exactly the same, despite of rising inflation. Nevertheless, remember that your monthly expense of housing will variate if insurance expenses and/or tax change.