Renting can be a solid choice while saving for a down payment, but recent findings show that homeownership is still the better deal. The cost of renting is rising faster than any other time in the last six years. That combined with incredibly low interest rates means it’s a great time for renters to consider taking steps toward homeownership.
- You Don’t Need a Big Down Payment: According to the National Association of Realtors, the recent median down payment for first-time homebuyers is 6%.
- Homeownership is a Tax Break: The interest and property tax portion of a mortgage is tax deductible which can be a huge financial advantage.
- Eliminate Your Monthly Payment: Unlike renting, you will eventually pay off your monthly payments which is a big factor in how homeownership can drive stability and savings.
- Invest in Your Future: Your monthly mortgage payments work for you as forced savings in the form of equity. As you build equity and grow your net worth, you can reinvest those savings into your future.
- Predictable Monthly Payments: Your monthly mortgage costs are likely based on a fixed-mortgage rate which allows you to budget your finances over a long period of time.
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