Renting a house or apartment can be quite draining. Calculating the amount of money you would have had if you hadn’t paid rent for the last five years just doesn’t bear thinking about. You don’t have to throw all that money down the drain, though.
The wise option would be to take out a mortgage and pay monthly installments to that rather than paying rent. That way, you will eventually own your own house and you will have made a shrewd investment. Is it time for you to bite the bullet and get on the property ladder?
What Do You Need to Do to Get a Mortgage?
If you think you are ready to buy a house, the first thing you need to do is see if you are eligible for a mortgage. Getting the right information about mortgages is now easier than ever, thanks to the internet. This is because there are sites tailored to helping new homeowners find the best deal. You can find out about mortgage interest rates and how to compare mortgages with Trussle, meaning that a lot of the hard work is already done for you.
One thing that may scare some youngsters off about getting a mortgage is the fact that it is going to take a long time to pay it back. The most common repayment term for a mortgage in the USA is thirty years, with an average fixed rate of 3.99 percent. When you think about it, though, the repayments on this loan are going to be similar to what you would be paying on rent anyway. So it makes more sense to be working towards paying off a house than simply losing money on rent, which is not an investment.
What are the Benefits of Owning a House?
Aside from the fact that your monthly rent is now going towards paying off a mortgage and eventually allowing you to own the property outright, there are even more benefits to owning a house, as the Rochester Real Estate blog explains. While your monthly repayments may sometimes be higher than what you would pay on rent, once the repayment term is over you won’t have to pay anything to live in your house, and you will be the sole owner of the property.
The main advantage of buying a house is that they typically build equity over time and end up being worth a lot more when you have finished paying back your loan. This makes it a good investment and a nest egg for the future. Most mortgages are fixed rate as well, so there is more certainty and stability surrounding monthly repayments. When renting, on the other hand, you have less security in this regard, and your landlord could decide to raise the rent every year if they wanted to.
In addition to the obvious long term benefits of buying a house, you will also have a sense of pride in your own home. You can become part of a community and build a legacy wherever you decide to settle down.
If you are someone who is tired of paying rent for a house that you will never own, you should think about getting on the property ladder as soon as possible.