Rent Versus Buy
To Rent, Or To Buy?
That is the big question, isn’t it? The decision to buy a home can be a tough one. In fact, it’s one of the biggest decisions you’ll ever make in your life. It’s helpful to understand the benefits of buying versus renting so you can make an informed decision.
Just remember - renting and buying aren’t fundamentally good or bad. What matters most is doing what’s best for you and your future.
Buying Pros
Renting Pros
Buying Cons
Renting Cons
* Depending on loan program. Down payment implies an opportunity cost, or the potential financial benefits you could have achieved through an alternative investment path.
Home Ownership Advantages
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Mortgage Interest DeductionThe interest you pay on your mortgage is tax deductible for any home loan up to $1 million dollars. Interest makes up most of your mortgage payments early on, so this is a helpful tax perk for new homeowners.
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Mortgage InsuranceIf you purchase a home with less than 20% down and have to pay mortgage insurance, you can deduct those payments on your taxes as long as your adjusted gross income (AGI) is less than $109,000.
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Sales And Real Estate Taxes
The sales tax you pay when you buy your home is also tax deductible. This is especially helpful if you live in a state without income tax or if your home’s sales tax costs more than your income tax.
And, as long as your home is your primary residence, your real estate taxes (or property taxes) are tax deductible, too.
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Building EquityAs you make monthly payments on your mortgage, you build equity. Equity is the current market value of your home minus the amount you owe on your mortgage. As the market value of your home increases, so will your equity. This money can be used for consolidating debt, home improvements and more.
Start Your Home Purchase Today!
Apply with our online application HomeNow or reach out to a Mortgage Banker to answer your questions. Either way, you can expect personal and attentive service to help guide you through each step of the process.
Questions? Call us at
866-910-5218
Monday - Friday from 7am to 6pm CST.