Deciding if you’re ready to buy a house depends on a lot of factors. It’s important to examine your current situation and how it could change in the future. Do you plan to live there for at least five years? Do you have a stable income? Are you planning on any major life changes, like starting a family or changing jobs? Buying a house is a big commitment but there are a number of compelling reasons as to why you should buy your own home.
One of the biggest factors people choose to buy a house instead of renting is that once your mortgage term is over, you own the home. Owning a home provides a foundation in a way renting can’t.
Your home is also a place you have the ability to make your own and the flexibility to make your vision happen. Change the paint color, knock down a wall or build an addition - it’s your home and you have creative control.
In addition to having more space for your lifestyle, you have the advantage to build equity and unlike rent payments, the interest you pay with your mortgage payments can be tax-deductible. In other words, you don’t have to make another monthly payment without building up any equity.
Equity is important because you can use it later on to pay for home improvements, pay off high interest rate debt, or whatever else you might need. Plus, home values are also going up, which means you gain more equity faster.
Why rent when you could own for the same monthly payment, or maybe less. Even though real estate prices differ in every community, renting is often more expensive than you might think. If you’re considering purchasing a home, now is the time to do so while rates are still low. Interest rates factor into the amount of your monthly mortgage payment, so a lower rate usually means a lower payment - making it more cost-effective to buy.
Here’s an example of how your $1,325* monthly rent could be the same monthly payment on a $250,000 home:
SELLING PRICE: $250,000
20% DOWN PAYMENT: $50,000
LOAN AMOUNT: $200,000
|Principal & Interest (P&I)||$955|
|Real Estate Taxes Estimated||$250|
|TOTAL MONTHLY MORTGAGE PAYMENT||$1,325*|
Since 1951, we’ve helped people save hundreds, or even thousands of dollars a month, when they purchase or refinance their mortgage with Nutter.
*The above is provided for informational purposes only. Based on a 30 year fixed APR 4.039%. Based on an original loan of $200,000 at 4.039% for 30 years. Not a commitment to lend. Loans available for qualified borrowers. Rates and terms subject to change without notice.