What's Best: Buying a Home or Renting?

The choice between buying a home and renting is one of the hardest financial decisions adults make. We’ll all have to deal with this decision at one point in our lives. With rent continuing to rise, many tenants are being priced out of their rental markets and are looking at homeownership as the long-term solution. But what are the benefits of being a homeowner? Let’s take a look:

1. Owning a home provides you with a built-in savings account. What does this mean exactly? As you pay your monthly mortgage payment, you’re building equity and paying down your overall home loan—that’s what we like to call building wealth. You'll walk away with a big pay-off and you can't beat that!

2. No rent-related stress. When you own your home, you won’t be faced with the dreaded rent hike each year from your landlord. There’s something to be said for stability.

3. You’re in control. Landlords can take their sweet time fixing a broken dishwasher or a leaky toilet. When you own your home, you can call the repairman of your choice and decide the importance of getting something fixed on your timeline. You’re also in control of customizing your personal space without losing a security deposit. Want to paint a bedroom bright blue? Nothing is holding you back! Want to re-tile your bathroom floor? Have at it—you’re in charge of your house. Go ahead and get a dog and a cat while you’re at it, pet deposits are a thing of the past.

4. Buying costs less than renting over the long term. It’s true—even if your monthly mortgage payments are more than what you were paying in rent. So how does this add up? Over the lifetime of your home loan, you’ll end up paying less if you buy. As mentioned earlier, rents are continuing to rise and your long-term costs will be far less than if you continue to rent year after year.

5. Homeownership allows you to take on a second income. You can rent out a spare bedroom or even the whole house for a week on websites like Airbnb.com or Vrbo.

6. You can take advantage of historically low interest rates (yes, rates are still low). When shopping for a mortgage it’s important to note that you need to look at the whole picture—not just the interest rates. Check out if there are any points and/or fees associated with the loan and if there are any other “add ons.” Churchill’s Home Loan Specialists are transparent and will work with you to find the best loan for your situation.

We get it—buying a home is a personal choice you’ll have to weigh. It’s worth getting ahead of the game and crunching the numbers with these mortgage calculators. After you’ve researched your options, you can decide if it’s best to pay your own mortgage … or your landlord’s. Our Home Loan Specialists are here to help with any questions you may have along the way.