A new year often brings the opportunity and motivation to make positive changes in your life. Maybe that’s vowing to eat better and go to the gym, or perhaps pursuing new, creative endeavors outside of your comfort zone. With the calendar shift to 2023 also comes the opportunity to end the financial drag of renting entering the investment phase of life by purchasing a new home – a sanctuary for your family, a place of stability, and a location to help foster a sense of community.
Owning a New Home Beats Renting
According to Money, owning nearly always beats renting. Even with higher interest rates, paying a mortgage is hands-down more affordable than renting. A mortgage is also an investment in your home and family, whereas rent payments are only an investment for your landlord. As rents continue to rise each year, a fixed-rate mortgage can guarantee that your housing expenses remain consistent.
Unlike renting, making your mortgage payments also builds equity. Equity is the difference between the fair market value of your property and what remains on your mortgage. As you pay down your mortgage, or if your home gains in market value, you will gain equity. Having equity allows you to borrow against your home for things like larger-scale home improvements.
Home buyers also tend to be pleasantly surprised by the tax benefits of owning a home. Any interest that you pay on your mortgage is tax deductible. If you sell your home at a profit, net proceeds may also be tax exempt.
Look Forward to Your Future Mortgage Refinance
Purchasing a home is an investment that saves you money from the jump. Falling interest rates can save you even more as time goes on. In the future you can look forward to shaving 10-30% off your mortgage payment, depending on how low rates go.
Here Today, Gone Tomorrow
Pay off your mortgage early to save even more! Unlike renting, you are only on the hook for monthly payments until the loan is paid off. Adjust your payments or pay off your mortgage early to save even more.
Owning a home is part of the American dream. It’s right up there with Mom, baseball, and apple pie.❤️ Many renters don’t believe that homeownership is within their reach, but it certainly can be! By getting started today, potential homeowners can help secure their financial future and create a haven for their family within their chosen community.
Take the first step towards home ownership with our home buying tools, starting with our mortgage calculator and home buying guide. The team at Fairway is here to help with every step of your home buying journey – Call or email us today!