Pennsylvania Association of Mortgage Brokers offers benefits of homeownership versus renting
Harrisburg, PA – November 27, 2007 – As you think about your goals for the coming year, is purchasing a home part of your plan? If so, are you ready to take on the responsibilities of being a home owner? Millions of Americans already enjoy the pride and benefits that go along with purchasing and owning a home. During the largest financial transaction of a consumer’s life, the Pennsylvania Association of Mortgage Brokers (PAMB) offer tips to consider the advantages of buying a home versus renting.
First ask yourself these questions before deciding if buying or renting is right for your lifestyle:
- Do you plan on remaining in the city, town or general locality where you are presently residing?
- Are you thinking about relocating? If yes, how soon?
- Are you employed and able to confirm your income?
- Is your income sufficient to handle a mortgage payment along with other monthly bills such as utilities and previous debt?
- Have you analyzed whether owning a property might cost less than the rent you are paying?
- Are you able to take care of the repairs and improvements that owning a house requires?
Advantages of Buying a Home:
- Monthly mortgage payments increase home equity, which is often the base from which you build your financial future.
- Homes typically appreciate in value.
- Potential tax deductions. (Interest paid to the lender and real estate taxes are tax deductible.)
- Your family has a place to grow and put down roots.
- Homeownership offers greater safety and security for your family.
- Owning your first home often leads to a bigger home in the future.
- It is your home and you have the freedom to do as you choose.
- If you remain in your home for the term of your loan, the property will become free of debt.
Disadvantages of Buying a Home:
- Renting may cost less than buying
- You, not the landlord, must do the maintenance and repairs.
- Payments must be consistently paid on time; otherwise your lender could foreclose on the property.
- If foreclosure is completed, you risk losing the money you put into your house.
- You are unable to move easily. Often you cannot sell your home quickly.
Before deciding to purchase we urge you to contact a licensed mortgage broker, mortgage professional or a trust financial advisor. They can analyze your financial circumstances and advise you how much you can borrow as well as estimate the monthly payments. You can then make an informed decision whether to purchase or continue renting. Homeownership may not be right for you.
The Pennsylvania Association of Mortgage Brokers is composed of licensed mortgage professionals who strive to attain the highest degree of excellence and customer service available. PAMB members also subscribe to a code of ethics. For more information, visit www.pamb.org or call the Association office at (888) 311-PAMB.
