Crestline Funding: The Difference in Rent vs Mortgage
One of the most common questions asked to the loan specialists at Crestline Funding is whether it’s the right decision to pay rent vs mortgage payments. There are many different factors to consider when making this decision. Potential borrowers contemplating whether to pay rent vs mortgage payments should contact the friendly, knowledgeable home loan specialists at Crestline Funding. Crestline Funding has been helping families purchase their dream homes for over 15 years. Crestline Funding has endured through the booms and busts because of its belief in honest lending practices, low rates and top-notch customer service.
The Benefits of Equity
Building equity is one of the greatest benefits of owning property. When deciding whether to pay rent vs mortgage payments, potential borrowers should consider the fact that renting doesn’t build any equity. Every month a renter’s hard-earned money goes to a landlord. With a mortgage, a portion of each monthly payment is applied the principal amount of the home loan, bringing homeowners a step closer to owning the property free and clear. Also, homeowners who have accumulated enough equity can open a home equity line of credit and access funds either for emergency spending, property improvements, or for any other investment they might wish to make.
The Costs of Homeownership
When deciding whether to pay rent vs mortgage payments, one should consider the amount of money one has available for the day-to-day upkeep that comes with homeownership. Homes can be very expensive, even if the house is brand new. As any homeowner knows, there is always something to fix on a house - whether it’s adding a fresh coat of paint or fixing a stopped-up sink. Renters needn’t be concerned about regular upkeep; if there is a problem, the landlord is responsible. Plus, when deciding whether to pay rent vs mortgage payments potential borrowers should consider the amount of money required for homeowners insurance, property taxes and PMI (private mortgage insurance).
Taxes
Homeownership does have its tax benefits. Although property taxes generally have to be paid every six months, people with mortgages get the benefit of being able to write off the interest on their mortgage payments. This is very helpful, especially in the fist few years of homeownership, when borrowers with fixed-rate mortgages pay a substantial amount of interest on their home loans. The potential tax benefit is something that should be considered when deciding whether to pay rent vs mortgage payments.
Crestline Funding – Your Friend in the Mortgage Business
People with questions about paying rent vs mortgage payments should consult the knowledgeable loan specialists at Crestline Funding. Not only can Crestline Funding provide the lowest interest rates in the business, but we also have a streamlined process that expedites both the approval and funding processes. Plus, Crestline Funding takes pride in its honest lending practices and top-notch customer service.
Find out if you’re approved for Crestline Funding's low interest rates in just a few minutes by applying here.