While most people start off renting their first home or apartment, most people have the goal of owning their own property one day. While this represents a sense of success and accomplishment for many people, there are actually concrete benefits to buying over renting. Some people may hesitate at the cost of purchasing real estate. However, some of the key benefits are covered below.
Some people look at the cost of a mortgage and think that they're losing this money to the mortgage company. However, this couldn't be further from the truth. Every payment gets the buyer closer and closer to owning their own property. This equity has a variety of benefits including a source of credit for the house, an increased credit score and financial stability. People don't build equity by renting a property.
The government knows that the backbone of the economy is made stronger when people purchase homes. Therefore, the interest on a mortgage is actually tax deductible. Because most mortgages are large, this is an enormous tax deduction for anyone owning a house that can save people a large amount of money on their taxes. Take advantage of this deduction.
While the down payment might be substantial, most people who put between 10% and 20% down wind up with a monthly mortgage payment that is lower than a monthly rent payment for a comparable property. Furthermore, this mortgage payment builds people's finances instead of throwing it down the drain on rent.
The mortgage process can be a daunting process and nobody should have to go through it alone. For any questions contact Midland Mortgage today to schedule a consultation.