There are a whole bunch of new terms you'll hear when you decide to start shopping for your first home. One you may have heard of is Private Mortgage Insurance (PMI). Here's what you need to know about PMI and how it can help you buy a home.
Buying your own home is a wonderful goal to have. Renting is okay for some people but you might be starting to think it's not for you. For many people, the benefits of owning a home often outweigh any benefits to renting. Our Team works with many first-time buyers regularly. Here are two benefits of homeownership that can change your life for the better.
As a homeowner, you have more control over your life than that of a renter.
It's true that buying a house comes with larger upfront expenses. There are other expenses you don't have as a renter. But for most people at some point, it makes more financial sense to buy a house. The biggest financial benefit is NOT putting money into your landlord's pocket. Technically, your home is an investment. You might not want to approach your home choice the same way you would manage your retirement account, but the money you pay in a mortgage is building equity in your home and financial security for you. And those are your benefits, not the landlords.
In many neighborhoods, rent payments are equal to or more than house payments. Over a long period of time, the cost of living will go up, and rent will go up as well. Eventually, it just might not be possible for you to pay out any more of your budget in rent. The most common mortgages are 15-year and 30-year terms. That means you have a consistent housing expense for years to come, freeing up your money for other uses. And when the mortgage is paid off, you'll own an asset. After years of paying rent, you won't own anything and your landlord has made a lot of money in the process. As long as you plan to stay in the area, you can buy a home and build some financial security.
If you're ready to escape the rental trap and purchase a home, contact The Sheri Goldman Group. We can help find the South King County home you've been waiting for.