Both buying and renting have their advantages. The better choice for you depends on your circumstances. Here are some of things to keep in mind when you weigh the benefits of renting against the benefits of buying.
First time buyer benefits include opportunities to:
- Gain home equity by paying principle. The principal portion of every mortgage payment you make has the potential to grow your asset.
- Take advantage of tax benefits as mortgage industry and real estate taxes are usually tax deductible. (Consult a tax advisor regarding the deductibility of interest.)
- Build your credit by making on-time mortgage payments can help you create and keep up a strong credit history.
Buying your first home also comes with added responsibilities:
- Commitment to making a monthly payment in full and on time, today and into the future.
- Extra expenses, including property taxes, homeowners insurance, homeowner’s association dues, tax assessments, and, if you put down less than 20%, private mortgage insurance.
- Unpredictable maintenance, including small expenses, like a clogged drain, to big expenses, like replacing a roof.
Only you can decide whether buying a home fits your life and current financial situation. Your HomeBridge Loan Originator will help you weigh the benefits of both and advise you on next steps.