Why Rent When You Can Buy?
A debate continues about the choice of home rental or ownership, and each side will offer opinions about why their choice is best. Here at Bank of England Mortgage in Sarasota FL, we feel home ownership is the best use of your money. Here’s why:
Home mortgage interest may be deductible if you itemize your taxes. Current mortgage interest deduction is capped at $750,000 mortgage value, unless you signed your mortgage before 2018 when mortgage loans up to $1,000,000 applied. In addition, there are deductions possible for property taxes up to a point. Contact your tax advisor for more information or specifics.
A key part of owning a home is the ability to build equity. When you rent the money you spend is gone. When you own the equity accumulates as the loan is paid off. This equity can be put to use later with an equity line of credit, or give you leverage to purchase a more expensive property when needed in the future. Equity becomes a bigger factor as housing values rise in your area, because the increased value makes the equity work as a positive investment which has made you money when you sell. Accumulated equity can also be a benefit when you reach senior citizen age, because you can use it to apply for a reverse mortgage if you wish to remain in your home and get paid for it. Keep in mind that reverse mortgages have some drawbacks so review them carefully.
You Have a Stable Living Situation
Home rental always has an underlying tension because a landlord can refuse to renew your lease at the end of your agreement. You are also subject to rent increases or other conditions which could cause you to have to move. When you own a home and obtain a mortgage from Bank of England the mortgage principal and interest remain the same for the life of the loan. Changes can occur if you include insurance and property tax escrows in your account because those fees can change over time. As long as you pay the mortgage you don’t have to worry about being forced out by a landlord. Owning a home gives you peace of mind for many reasons.
If you are looking to buy your first home or refinance your existing home please call Bank of England Mortgage at 941-361-1280. We look forward to helping you finance your dream home at Bank of England in Sarasota.