Blog


The Cost of NOT Owning Your Home

Nov 28
11:08
AM
Category | General

Many first-time homebuyers who could qualify and afford a mortgage often don't because they still believe certain myths regarding the down payment or credit score needed. They also may not be aware of how much less they could be paying for their own mortgage rather than their landlord's. Despite the great financial benefits that owning a home has many still continue to rent. 

In reality, buying or renting a home is an intensely personal decision, with emotional and even financial considerations that go beyond whether to invest in this one (admittedly large) asset. Looking strictly at housing market numbers, there is a concrete point at which buying a home makes more financial sense than renting it.

Today, let’s look at the financial reasons why owning a home of your own has been an indelible part of the American Dream. 

1. 84% of Americans Believe Buying a Home is a Good Financial Decision:

  • Homeownership is a form of forced savings.
  • Homeownership provides tax savings.
  • Homeownership allows you to lock in your monthly housing cost.
  • Buying a home is cheaper than renting.
  • No other investment lets you live inside of it.

2. Studies have shown that a homeowner’s net worth is 44x greater than that of a renter.

3. Just a few months ago, we explained that a family that purchased an average-priced home at the beginning of 2017 could build more than $48,000 in family wealth over the next five years.

4. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment– along with a profit margin!!

Bottom Line

Owning a home has always been, and will always be, better from a financial standpoint than renting. If you're ready to #losethelease, click below to take 3 minutes to complete our prequalification form. One of our loan officers will connect with you to talk about your home buying goals. 

Ready to get started? Click here to get pre-qualified today!