Perennial Funding > Blog > Mortgages > Buying a Home Versus Renting

Buying a Home Versus Renting

Buying a home is woven into the American dream. The possibilities of homeownership are often unclear and occasionally met with a variety of challenges. However, owning a home might be within reach for many individuals who are renting. Speaking with a licensed mortgage professional from Perennial Funding could enable you to determine if you are qualified to buy a home.

Advantages of Buying a Home Instead of Paying Rent

Mortgage loans provide homeowners with payment stability. With long-term financing, such as a 30-year fixed-rate mortgage loan or a 15-year fixed-rate home loan, a borrower can set a budget for several years. However, an annual rental lease could be subject to a monthly payment increase at the time of renewal.

Knowing that a mortgage payment will remain unchanged may be extremely important for families with tight budgets and for retirees who are on a fixed income.

Money that is earmarked to pay for monthly housing expenses may be used to build equity. With a portion of each mortgage payment going toward the principal loan balance, a home loan will be paid off on a specific date, while rental payments never end.

With an affordable home loan, a first time home buyer might outlay less money toward a monthly mortgage payment than a comparable property would cost to rent.

Tax Advantages of Buying a Home

Homeowners pay annual interest on outstanding mortgage loan balances. Using a mortgage loan to finance the cost of a home could provide a variety of tax advantages. Generally, homeowners can deduct mortgage interest and property taxes on their personal tax return.

The specific tax advantages of buying a home will vary among individuals. Speaking with a licensed tax professional is recommended to determine whether certain tax deductions or incentives apply to your situation.

Getting Pre-Approved to Buy a Home

Financing for a home is often the largest loan that a consumer will be responsible for paying. Therefore, it is important to speak with a licensed mortgage professional about affordable mortgage loans to buy a home. It is recommended for a prospective home buyer to obtain a mortgage pre-approval letter before contacting a real estate agent.

Knowing your ideal shopping range for a home could save you a lot of time. Additionally, a mortgage pre-approval letter from Perennial Funding may be used to show home sellers that you are prepared to negotiate.

Contact Perennial Funding today at (888) 496-7291 to inquire about financing to buy a home.

Rent vs Buy Analysis!

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*By refinancing your existing mortgage your total finance charges may be higher over the life of the loan.

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