Pride of Ownership
It’s clear that owning a house is much better than renting, but why you may ask? Well, it’s simple: You are paying down a mortgage (amortization) and building equity! When you sell your home, you will get all your initial down payment back plus the equity your house accumulated over the years, whatever amount that may be after all closing cost are paid. In addition, there are tax benefits and other perks that comes with owning a home. Renting on the other hand, will give you back your initial deposit and only if the house wasn’t damaged. After 5 years of renting you may end up moving with nothing to show for it.
Furthermore, most families enjoy the privacy and ownership factor of being a homeowner and in control of their lives and assets. They take better care of their home and show more pride of ownership once they know they are the owner of it. Although owning a house comes with greater risk, more responsibility, and a higher cost, the return, freedom to do what you want, and overall benefits are much greater than renting.
If you already own a home. The top reasons why most people refinance are the following:
- To lower their interest rate and mortgage payment.
- Change programs and remove mortgage insurance to lower their mortgage payment.
- Lower their interest rate and loan term to pay off their mortgage sooner.
- Get some cash-out to remodel their home.
- Or to consolidate their debts at a much lower interest rate by utilizing the equity of their home in a cash-out refinance.
These are all good reasons to refinance and to be a homeowner.
Bottom-line: owning a home gives you leverage where you can utilize your home to help you with your current financial needs, provided you have built enough equity, maintained good credit and work history to re-qualify for a new mortgage loan. We recommend taking advantage of the market when it’s working in your favor.
