Equity is the difference between your home’s value and the amount you owe. Equity builds as you pay down your mortgage and your property appreciates in value. The more equity you have, the more you’ll profit when you sell – if you sell. Eventually you could just pay off your home and live rent and mortgage free for the rest of your life. In the meantime, you could just build wealth. Additionally, if you buy a home that’s affordable, you can easily knock out your mortgage in way less than 30 or even 15 years. But you need to stop renting and start owning.
2.) You need to stop paying your landlord's mortgage.
You need to stop allowing other people to get wealthy off your hard work. Your rent payments represent hours, perhaps weeks of your time each month. You will never see your rent payments again. Get yourself to a point where you can qualify for a mortgage and start playing for keeps.
3.) You need to gain stability.
As a tenant, you’re at the mercy of landlords and the ever-changing rental market. You might be paying $1,200/month now, but your landlord wants $1,350/month next lease term. There’s a way around this stress. If you get a fixed-rate loan, your principal and interest payment remains the same for the entire life of the loan. You’ll never have to worry about needing to move out because of increasing rent or because your landlord needs to sell her property. Stability comes with owning, but you need to commit to stop renting first.
4.) Interest rates are crazy-low right now.
Interest rates are probably not going to get much lower than they are right now. Lower interest rates decrease the amount you pay each month. Thus, low rates mean you can afford more home for your money. The sooner you own, the sooner you can benefit from these historically low rates. As a bonus, the amount you pay in interest each year is tax deductible. This means a larger tax return for you.
5.) Qualifying is easy.
If you have sufficient income and credit above 580, you can qualify for an FHA loan. An FHA loan only requires a 3.5% down payment. In some cases, credit scores below 580 suffice, but a 10% downpayment may be required. I have all sorts of information available to first-time homebuyers or hopeful buyers who may not think they can qualify due to past foreclosures or short sales. Stop renting and start owning. Contact me now and I’ll put you in contact with a lender who can help you qualify. If you can’t qualify right now, I can help you get on the right path.