When an individual first purchases a home the mortgage
payment includes both interest and principle payments. In the beginning the
borrower is paying mostly interest but as time passes the majority of the
payment goes on the principle. This is where the saving part comes in at
because by this time your payment will be mostly principle and that payment
will be less than a rent payment, since market rent continue to increase.
A home owner has a leverage position when buying a home. It
is purchased with a small percentage down but appreciates based upon the total
purchase price. Plus, when an individual owns a home, there is additional
buying power because they can, although not recommended, go out and get a home
equity loan.
A person that rents a home needs to ask the landlord or
permission every time they want to paint or plant a garden or put up a swimming
pool. Whereas, a homeowner does not need to ask for permission, unless they
live in a hoa. They can paint their walls any color they desire and have their
entire yard as garden if they wish. A homeowner has the freedom that a renter
does not have when they own their home.
The homeowner has the same payment month after month, year
after year, as long as they have a fixed rate mortgage. This gives the
homeowner a sense of stability. They know what to expect every month. Whereas a
renter, may not know what to expect from month to month. Every year the cost of
living continues to go up and that means the cost of rent as well. So, by
owning a home the individual has a good feeling knowing their payment is not
going to change regardless of how much the cost of living goes up.
There is nothing like the feeling you get when you own your
home. It is your home. You worked hard to get it and now you can feel good that
you have made a great accomplishment.
Call/Text 858-354-2354
Email TimBro97@aol.com
www.TimBroHomes.us
BRE #01224576
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