6 Reasons Why Science Says Own Your House
1. It’s cheaper than renting.
After research, it turns out it’s cheaper to pay a monthly mortgage than rent in 42 states. Renting is a better bargain financially in just eight states plus the District of Columbia. The one main reason home ownership is viable is that mortgage interest rates are still historically low. The average U.S. 30-year fixed mortgage rate is 3.56% according to BankRate.com. Down payments are generally what set people back as it is typically 20% of the purchase price. Be sure, if you live in Illinois, Ohio or Texas, to check out our down payment assistance programs. See Our Down Payment Assistance Here >
So, where is it cheaper to own than to rent? Here are the 10 states with the biggest monthly savings from owning rather than renting:
- New York: $1,635 cheaper to own than rent.
- Massachusetts: $559.
- Illinois: $522. (MM DownPayment Assistance)
- New Jersey: $472.
- Pennsylvania: $461.
- Florida: $398.
- Maine: $396.
- Ohio: $375. (MM DownPayment Assistance)
- Alaska: $334.
- Rhode Island: $334.
2. It forces you to save.
Buying a home many not be the life changing experience some talk about; however, it can be. Buying a home in each of the 100 largest housing markets was 44% cheaper than renting according to Trulia. To look for a place in San Francisco, you’ll save about 18%, but if youre looking at owning versus renting in Detroit you may find yourself with a 70% cushion as Detroit is America’s most buyer-friendly market. Purchasing a home with a 5.5 percent mortgage rather than the 3.5 percent used in Trulia’s example makes owning a home in San Francisco 2 percent more expensive than renting, according to the Denver Post. Check out the Free Mastering Money Mortgage Webinar to start the process of finding that dream home.
3. Building equity
Plan on staying in your home for at least 5 years. Equity is paramount to sell with no cash involvement. Equity means ownership. Considering 5 years is interchangeable depending on what state you live in. never pay more than 9% closing costs and that includes fees to close the loan, realtor fees, title company, attorney fees, surveys, inspections and so on. Let the housing market raise the value of your home. The housing market typically rises one to two percentage points above inflation annually, but for nearly a decade, the market has been volatile. Many homes gained and lost significant value. As the market stabilized, home prices have risen again, replacing lost equity and adding more value in most markets.
SPECIAL NOTE: With any mortgage loan; The first five years are given more towards lender interest than they do pay down the principal obligation. See Helen’s “Build Equity From The Jump>”
4. Increasing Your Net Worth
A person’s home ownership gives them a unique tool for building wealth and it’s something that should be made accessible to more folks who need more help. Watch this webinar: MM Free Mortgage Webinar to see where you fit, but more importantly which group to join to be a home owner. The same goes for you who want to buy an investment property. Let’s start with the Mastering Money Free Mortgage Webinar.
5. Homes Can Appreciate In Value Over Time
Tips: Throw up a deck or patio. Everyone loves an outdoor level they call their own.
- Fix up that basement. Turn it into a game room, extra room or an office.
- Bath Remodel. Upgrading the bathroom makes every happier.
- Paint. Get the colors right for love and light. Paint your rooms the color that best fit you and your family. Adjust your space to flex your best ability to be a homeowner.
6. It Creates Stability & Wealth Creation
There are two reasons American’s love home ownership. Either they want the opportunity to build equity or desire a stable and safe environment. History shows home ownership is a well-traveled plan to wealth building. 60% of property managers predict that rental rates will rise by a minimum of 8% annually. Facts tell us that renting will create a non/zero relationship with stability over the next 5 years. Please watch MM Free Mortgage Webinar. Home owners enjoy stable environments and similarly are given the opportunity to continue building.