A Guide To Owning or Renting Your Home

Owning versus renting your home is a longstanding and often passionate debate. The reasons for owning or renting differ according to financial calculations and your personal preferences.

If you seek to own a home, do you prefer stability, building equity, control over home and its responsibilities, and tax benefits?

Before we review the advantages and disadvantages of owning and renting your home, let’s address critical factors to consider in making this critical decision.

A major consideration in timing a purchase is the level of mortgage rates. Generally, mortgage rates rise during periods of strong economic growth and decline during weak periods.

Financial costs differ between purchasing a home and renting. Homebuyers’ substantial costs can be divided into one-time payments upfront and at the closing.

Homebuyers are usually surprised by the number of required payments to those professionals  who are assisting in their purchase

As a credit, this amount reduces the purchase price at the closing. If you default before the closing, the earnest money can be the measure of liquidated damages to the seller.

The fee amounts vary based on the type of home, square footage, and locale. It is an essential cost as you may find structural damage.

The costs are often difficult to estimate and may depend on your DIY abilities. You will also have other expenses for lawn care and snow removal, which differ based on your geographic location.

Advantages Of Buying Your Home 1. Building Equity 2. Your Home As An Appreciable Asset 3. HELOC As A Source of Funding 4. Possibility of Rental Income

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