Guess What? Owning A Home Gets Financially Easier Over Time!!!
One of the biggest benefits of taking out a mortgage loan to finance the purchase of a new home? Unlike renting, owning a home becomes an easier financial hurdle over time.
It’s true: When you first take out a mortgage loan, you might view the monthly payment as a serious financial hurdle. But if you take out a fixed-rate mortgage, that monthly payment will remain mostly the same throughout the lifespan of your mortgage. If your financial situation improves, making that monthly payment will become an easier task.
Say you get a promotion at work or a raise. Maybe your spouse finds a better job. Suddenly, you are making more money than you were in the past. That mortgage payment won’t take up as much of your monthly income as it once did. It has become more affordable.
And that’s just the start. As you make your mortgage payments—and your home, hopefully, increases in value, or at least doesn’t lose value—you’ll build equity. If you decide to sell your home and buy a new one, you can use the profit from the sale to reduce the size of your next mortgage loan. Again, over time, owning becomes a less-intimidating financial burden.
The same can’t always be said of renting. Over time, your landlord might increase your monthly rent payments. This makes renting a more daunting financial task over time.
Now, this doesn’t mean that owning is right for everyone or that renting is the wrong choice in every situation. You need to examine your own financial standing to determine which approach is best for you.
Need more help deciding to rent or buy? Download your very own personalized eBook below. It's free!