Owning a home is everyone’s dream, and once you have a steady job and want to settle down, the first thing that comes to mind is homeownership. Besides, owning a home gives you a sense of security and stability that everyone with a family seeks. However, many people are not sure whether they should pay the mortgage or keep paying the rent for their homes. The short answer is if you can afford the down payment for a home, have a good credit score, and be willing to settle down and call a place your home, then next-generation home loans make a lot more sense. If you are not sure whether it is worth it to take a home loan instead of renting, then keep reading. In this article, we are going to explain why mortgage payments are better than rent payments.
You Pay Less In The Long Run If You Take A Mortgage And Fulfill Mortgage Qualification
If you take a mortgage by meeting all the mortgage qualification terms and conditions, you have to pay a mortgage for a certain amount of time until you are mortgage-free. However, if you rent an apartment, you will have to keep paying the rent pretty much your whole life. If you get a mortgage from a reputed mortgage company such as Nextgen Mortgage, you might get a loan that has monthly payments lower than your rent payments. You also have to pay a fixed amount every month for most mortgages while rent may increase over time as your rental contract is renewed. In New Hampshire and all over the U.S, mortgage rates stay the same if you have a fixed-rate mortgage, which makes mortgage a better option than renting.
You Build Equity Overtime By Making Mortgage Payments
Unlike renting, when you make a mortgage payment, you are building equity. Since the value of a property increases over time, by the time you pay off all your mortgage payments, your home would have increased in value compared to what you paid for it. Once you have built significant equity by making mortgage payments over time, you can use the equity you hold to get a home equity loan or a line of credit to cover your expenses. Or you can even use the equity you have in your home to buy a second home and rent it out as a source of passive income and a long term investment. On the other hand, renting doesn’t offer any of these benefits, and at the end of the day, you don’t have any ownership benefits in the property you are renting.
You can increase your net worth by buying a home
Taking a mortgage in N.H. or anywhere else for that matter, you have a chance to increase your net worth since the value of the home you own is added to your overall net worth. While some people would argue that investing the money in stocks pays a lot more, but unlike your stocks, you don’t have to manage your home as it appreciates. If you carefully select the area when taking a mortgage and consult a reputed mortgage company, it is highly likely that your home will increase in value, and so will your net worth.
Sense of stability
When you want to start a family, the first thing you want is stability and having a place your kids can always call home. A rental property can never give you the sense of stability that you want when starting a family.