Why Does Buying Make More Sense Than Renting?

If you can buy a house, you should. You get many tax benefits, including your interest and mortgage insurance being tax deductible. In a rental situation, you will spend equal to or more than your mortgage payments, and you don’t get any of those tax benefits and aren’t able to do home improvements.

The clear answer is if you have the capability, you definitely want to buy. It provides huge financial benefits and incentives, and it doesn’t make sense not to if you are able to.

If you have any questions for us, feel free to give us a call or send us an email. We look forward to hearing from you soon!

Which Renovations Add Value to Your Home?

People often ask, "What type of renovations should I invest in before listing my property?" Fortunately, I have advice about the most valuable renovations to invest in.





First, add a fresh coat of paint. Painting is the cheapest way to add value to your home. A crisp, clean property appeals to the buyer and makes a huge difference.

Second, replace the carpets. You may get away with a simple wash. However, if your carpet is worn out, consider the fairly small investment to replace it entirely.

Third, declutter the property. This isn't a costly investment, but it requires time. Ultimately, it will help make your home more appealing to buyers.

Finally, create curb appeal. You have only one chance to make a first impression! Clean up the yard. Plant flowers. Ensure the entryway looks nice. Make your property shine.

Buyers should fall in love with your home. Buying a home is an emotional experience. Give buyers the ultimate experience. If you have any questions, give us a call or send us an email. We would be happy to help you!

Owning A Home Can Offer You Wealth

The two biggest reasons that Americans prefer owning their own home instead of renting are:

1. They want to be able to build equity.

2. They want to have a safe and stable environment.


Equity

Buying and owning a home is the essence of the American dream. Your monthly housing payments will go towards your personal wealth and assets, versus going to the owner of your rental. This results in homeowners building a net worth that is much higher than the net worth of renters.


Safety and Stability

Two reasons why tenants are not as stable as homeowners:

• 68% of property managers predict that rental rates will rise by an average of 8% in the next year.
• 53% of property managers said that they were more likely to bring in a new tenant at a higher rate than to negotiate and renew a lease with the current tenant.

Bottom Line

Homeowners have the opportunity to build their family's net worth, and have more stability.

Answers to the Four Most Common Mortgage Questions

Have questions about mortgages? Don't worry, we've got you covered. There are several options to help you out with your mortgage that not everyone knows about.



Trying to figure out just exactly how a mortgage works? Don’t feel bad, the average home buyer doesn’t either. From how big a down payment has to be, to why your interest rate isn’t as great as you’d hoped it would be, the whole process is filled with head-scratching questions. In order to make this process just a little bit easier, we've compiled some of the most common questions home buyers ask about mortgages, and have provided you with the answers.

So question.. Do I actually need to provide a 20% down payment?

Answer: Typically, no, a down payment is less than 20%, and if you don’t have 20%, there are plenty of ways to put down less and still get the house of your dreams. One option: a Federal Housing Administration loan will allow you to put down as little as 3.5%, as long as you meet certain qualifications (AKA you have to have been employed for at least two years and have a minimum credit score of 500).

If you are an active or a retired military member, or a surviving spouse of a veteran, you can put 0% down with the help of a Veteran Affairs loan.

Along with those options, some states and/or counties even offer loan programs that enable borrowers with low income to receive a down payment subsidy.

Okay, but why did I see an advertised mortgage interest rate offer that is lower than what I've been offered?

Answer: Disclaimers (typically an asterisk) which says this is the best possible rate. In order to get that interest rate though, you will need an exceptional credit score (750 or above), as well as a low loan-to-value ratio. So basically, you'd be making an even larger down payment, typically at least 40% of the home’s price.

So then, if your borrowing scenario is not that spectacular, (750 or higher credit score and a low loan-to-value ratio) then you’re considered more of a risk—and your interest rate will rise to reflect that. In addition to your credit score and loan-to-value ratio, other factors come into play, such as whether you're buying a condo, single-family house, etc. Bottom line: Read the fine print when evaluating your loan options. (Or really when you're researching anything at all).

Okay so my next question.. Is a 30-year fixed-rate loan really the best option?

Answer: The 30-year loan with a fixed interest rate is typically the first thing that comes to mind for most home buyers, however, there is no "one specific loan" that works for every single person. For example, take adjustable-rate mortgages. They typically get a bad rap, however, they work well in certain circumstances, (like if you plan to move soon, before the rates adjust). They may also work well for you if you can’t afford a home with a fixed-rate mortgage, since those interest rates are slightly higher.

Do you have enough cash to cover the bigger monthly bills? Then a 15-year loan might make more sense than a 30-year loan. Why? You'll end up paying way less in interest.

Do I need private mortgage insurance?

Answer: If you can’t afford to make a 20% down payment, then yes, you’ll have to pay private mortgage insurance. If you end up unable to pay your mortgage, then this is when your private mortgage insurance will kick in. Ultimately, your lender will lose money if you can't pay your mortgage. That's where PMI steps in. It pays the benefits to offset that loss. You can expect to pay about 0.3% to 1.15% of your home loan in private mortgage insurance. While this can seem like a large amount, it may make sense if you want to buy a home now rather than wait until you can afford a bigger down payment.

Another option? Have your lender cover the mortgage insurance. You’ll pay a higher interest rate, but it’s often cheaper than paying PMI yourself each month.

It is always up to you to decide what is more important to you.