06/21/2021
Renting A Home Versus Buying A Home
1. Renting A Home Versus Buying A Home:
✅ Many renters think that purchasing a home is more difficult than it actually is
✅ Most are under the belief that they need a 20% down payment and also need closing costs
✅ Just the thought of buying a home means having a lot of money saved
✅ This is not the case
✅Home Buyers can purchase a home with a 3% down payment with conventional loans
✅3.5% down payment with FHA Loans
✅ USDA. and VA Loans do not require a down payment
✅ VA and USDA loan programs offer 100% financing
✅ Most homebuyers do not need to worry about coming up with closing costs
✅ This is because closing costs can be covered with sellers concessions and/or lender credit
2. Advantages Versus Negatives
* Both renting a home versus buying a home have their advantages and disadvantages.
✅ One of the main advantages of renting a home versus buying a home is that a renter has no liabilities in being a homeowner
✅ The landlord is responsible if anything breaks down in the home
✅ Some repairs such as the HVAC breaking down can cost hundreds of dollars
✅ If the renter needs to move elsewhere, they can just give the landlord a 30-day notice if they are month to month or move at the termination of their annual lease
✅ A homeowner would need to either rent their home or sell their home before they are able to move
✅ Homeowners would not want to leave their home vacant
✅ Another advantage of renting a home versus buying a home is that a renter does not have to worry about maintenance
✅ Homeowners are responsible for their own maintenance such as roof repair, furnace repair, electrical repair, and other major repairs
✅ Renters do not have to worry about maintenance and/or repairs
✅ Homeowners can write off the mortgage interest
✅Homeowners are property owners and part of their mortgage payments goes towards paying down principal and have their homes as an investment
✅ Homeowners will develop equity as time passes and their home appreciates
* Renters cannot write off rental payments and do not develop any equity. Every rent payment renters make is an expense. Homeowners who rent out their homes collect rent and with the rental payments pay their mortgage. Renters help pay their landlord’s mortgage and help landlords develop equity in their rental homes.
Ask the Experts📱 📧:
For more information about this article or other mortgage-related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at [email protected].
