Renting vs. Buying
home equity
Buying a home will probably be the most important purchase of your life, and the process can be intimidating. We are here to make it easy for you. This page outlines some of the basics you may want to know before getting started. Everyone has to start somewhere and now just may be your time.
Renting vs. Buying
Renting: |
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Advantages |
Disadvantages |
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Usually costs less than buying |
No tax benefit |
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You can usually relocate more easily |
No investment in or from property |
|
Little responsibility for maintenance |
No equity is accumulated |
|
No responsibility for repairs |
Rent amount may increase frequently |
Buying: |
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Advantages |
Disadvantage |
|
Tax benefits |
Responsible for property taxes |
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Greater stability |
Responsible for maintenance and repairs |
|
One of the best investments in today’s economy |
Monthly housing may cost more |
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Your equity builds |
Cash is tied up |
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First home often leads to a better home |
Can’t always sell a home quickly |
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Pride of ownership and fulfills the American dream |
Less mobility |
Costs of Home Buying
How Much Money Do You Need? Enough to cover:
- Down payment
- Closing costs
- Other housing related costs: mortgage payments, maintenance, repairs, private mortgage insurance
When it comes to down payment and closing costs, you may have several options – including little money down loan programs, seller paid closing costs and special REO loans for recent foreclosures. Furthermore, some loan programs do not require private mortgage insurance. Consult your Loan Officer for details.
Eric Storm
803-517-8791
