Buying a home is a significant financial decision that will likely impact your life for the next several years. That’s why it’s understandable when people who are planning to buy a home are having reservations while deciding if they’ll go through with it or not. That being said, homeownership does present many great benefits, especially now that mortgage rates are lower than ever.
If you’re looking for more information to convince you about the benefits of owning a home, here are a few reasons that will help you to decide.
1. House Prices Increase Over Time
The value of houses has always been appreciating consistently. That’s why buying a home is one of the best investments you can make since your capital is likely to grow.
2. You Can Decorate It as Your Own
Compared to renting, you can decorate your home according to your preference. You can redecorate and renovate your place any time you want without having to ask for permission from a landlord.
3. You’ll be Paying Lesser Tax
New homebuyers typically get substantial tax breaks. That’s because newer mortgages tend to have a more significant amount of interest, which results in greater tax breaks.
4. Your Money Goes to Purchasing a Property
With renting, the money you shell out goes into the pocket of your landlord. On the other hand, purchasing a home would mean that you will use your hard-earned cash to buy a piece of real property.
5. The Feeling of Stability and Security
You won’t have to worry about rent increases or having your building sold and redeveloped. Having a home gives you the feeling of security since you know you’ll always have a place to come home to and to call your own.
6. Passive Income Opportunity
Your home can be a means of acquiring passive income. You can have it rented out after moving out or even while you’re still living in it.
Now that you’ve seen just some of the great benefits of having a home, you may be on the fence about taking on a home loan. However, taking out a loan to purchase a house shouldn’t be a scary endeavor, especially when there’s an option that’s perfect for you.
● Conventional Loan
If you meet the loan requirements, you get to enjoy low interest rates compared to other loans. You’ll also gain access to lower monthly payments. If you add a down payment that’s greater than 20% loan-to-value, there will be no mortgage insurance for you to pay.
● VA Loan
This loan is tailor-made for people who have served in the military or veterans’ spouses who haven’t yet remarried. No down payment necessary since the property will be 100% financed.
● FHA Loan
Insured by the Federal Housing Administration, these loans require a low down payment which is perfect for low to moderate-income homebuyers.
● Jumbo Loan
From their name itself, these loans are enormous, for they go beyond the conventional loan limits. One thing to note, though, is that they have stricter borrowing guidelines.
● Adjustable Loan
This loan has adjustable-rate mortgages so that buyers needing a jumbo loan can have extra liquidity. This loan is perfect for buyers who are only planning to live in a home for a few years before selling it.
● FHA 203(K) Loan
This loan makes it possible for homebuyers to purchase a home and do renovations or repairs on the property using money from the mortgage.
Buying a home can be daunting since it involves a great deal of money and responsibility. However, the benefits often outweigh the cons, especially over the long term.
Reach Home Loans can help homebuyers purchase their property by offering various loan options for them to choose from. Now potential buyers can find flexible options that are perfect for their finances and future plans. Call us at 954-703-1465 now to get started.