Knowing the Benefits of Homeownership

By
Real Estate Agent with Brown Realty, 210-789-4216,www.JeremiahNewman.com TREC #0492321
https://activerain.com/droplet/5kY9

If you're renting a nice house, condo, or apartment, there's a good chance your monthly rent check is almost as much as a mortgage payment. Perhaps you've realized this and have been asking yourself why you're contributing to someone else's nest egg, instead of your own! If that sounds familiar, you may be ready to take the plunge into home ownership.

The other half of the equation is whether you're financially ready, and that would depend on a variety of things, including your credit rating, your debt-to-income ratio, and your ability to make a sufficient down payment on a new home. Although a 20% down payment is a desirable target to aim for, there's often a lot of flexibility on how much you're required to put down on a house.

Financing Your HomeOne of the main reasons a 20% down payment is desirable is that it takes you "off the hook" for having to pay monthly private mortgage insurance (PMI). The second advantage of making a substantial down payment is that it reduces the principal amount of your loan, which, in turn, lowers your monthly payments even more. However, if you're ready to become a home owner, but can't afford a 20% down payment, you can often eliminate PMI payments earlier than scheduled by making extra principal payments. The bank or mortgage company you decide to work with can fully explain their policies and what your options are.

If you are interested in making the transition from renter to home owner, now is a good time to start talking to loan officers. If nothing else, you'll be educating yourself on the intricacies of buying a home. Working with an experienced real estate agent is another way to learn the ropes, so to speak, when it comes to the home buying process. You will also want to research for the BEST Mortgage Rates available in 2019. 

Other than the financial benefits of building equity in your own home, there are also a lot of practical advantages. If you're currently a renter, for example -- especially in an apartment building, duplex, or townhouse -- you're probably tired of the lack of privacy and the unwelcome noises you can often hear through walls, floors, and ceilings.

Becoming a home owner brings with it a pride of ownership and the ability to plant trees, bushes, and gardens on your own property. Depending on what's available in your price range, you can also enjoy your own private deck, screened in porch, or patio. Options for the kids (if you have them) include swing sets, sand boxes, and room to play backyard sports or run through a water sprinkler during the hot weather.

If you feel like you are ready to take the plunge into home ownership, the first step is to make lists of your requirements, your preferences ("wish list"), and financial resources. The next step is to find a good real estate agent to start showing you homes that fulfill your needs and check off as many items on your wish list as possible!

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Lending / Financial
Location:
Texas Bexar County San Antonio
Tags:
mortgage rates
benefits of homeownership
renting vs buying
homeownership for millenials

Spam prevention
Show All Comments
Rainmaker
3,173,531
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hi Jerry... no doubt that a 20% downpayment is ideal to avoid PMI... but for most first-time buyers it seems to be a hard hurdle to oversome, especially as home prices increase. I'm thankful that there are mortgage programs available for those with good credit who can't save easily save up the 20% downpayment. And in many cases, even with PMI the monthly carry is less than paying rent.

Oct 09, 2019 12:23 AM #1
Ambassador
1,167,320
Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Yes, Nina Hollander First Timers are most likely have a harder time getting the 20% downpayment, since many are not preparing themselves for homeownership expenses. I agree that homeownership is less expensive than renting. 

Oct 09, 2019 05:25 AM #2
Ambassador
3,396,303
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I love this post, Jerry and actually just had this conversation yesterday with a buyer about the PMI - it's worth waiting a little longer to save up for the 20% down payment, isn't it?! 

Pride of ownership is a huge benefit when comparing rent vs. own. I can't imagine renting again - ever! 

Happy Tuesday!

Oct 29, 2019 09:30 AM #3
Ambassador
1,167,320
Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Thanks, Debe Maxwell, CRS I feel the same way as you on renting. If fact, I just picked up a new client who discovered that owning his own home was far better than paying the landlord's mortgage. Have a Blessed Week!

Oct 29, 2019 11:57 AM #4
Rainmaker
1,710,764
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

I can't believe that anyone who could - doesn't own their own home - Makes me crazy and I am always campaigning to try to get people to break that cycle of foolishness 

Nov 10, 2019 04:45 PM #5
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
1,167,320

Jerry Newman

Texas REALTOR, San Antonio Military Relocation
How May I Serve You Today?
*
*
*
*
Spam prevention

Additional Information