Helping clients make an informed rental decision is one of our goals. CU
Mortgage counselors can provide market-based information that best fits the
needs of our clients both financially and socially. Housing clients who
receive rental subsidies and partners who are subsidy providers can discuss
mobility options (whether you should move from a familiar area to other
areas that are better able to meet your needs).
When homeownership is realized our counselors can help you with any
issues that come along. We can teach you how to best utilize and maintain
your homes’ equity and help you create a sound financial plan for the
future. CU Mortgage can help you with taking the right steps to protect your
investment from foreclosure, understand the benefits of homeownership,
advise you on maintaining your homes condition, making repairs, and repair
financing.
The “American Dream” is to own a home. Although many people consider this
purchase, many also choose to remain renters. Consumers just don’t want the
responsibilities that go along with owning a home and they like the
worry-free aspects of renting. Others still feel that they can’t afford to
own a home, so it is not something they pursue. However, things have
changed. Sometimes is possible to purchase a home with as little as 3% down
or sometimes even zero down.
Advantages of Owning a Home
When you buy a home you can afford and you make the mortgage payments on
time, you can build equity. Equity is the portion of the home that you
actually own. You can increase equity by making your monthly payments and
your home can appreciate in value over a period of time. The mortgage
interest and real estate taxes that you pay each year can be deducted on
your income tax returns when you itemize deductions. There also comes a
sense of accomplishment when you successfully own your home and maintain it.
Long- term homeownership can provide you with retirement security.
Disadvantages of Owning a Home
Property values can drop, depending on the neighborhood in which you
live. Choosing a house that has strength in value within the real estate
market is important. As a homeowner, you are responsible for paying for any
unexpected costs. The mortgage payment, which is generally higher than rent,
includes the added costs of home repairs and the general maintenance of the
home. Therefore, a budget and savings plan becomes crucial. Owning a home
and not keeping up with the payments would allow a lender to demand payment
in full or foreclose on the mortgage. You could lose your home and any
equity that you have built along the way. If however, you rent, you can
downsize to a less expensive apartment in order to cut expenses. The
purchase of a home does not allow for as much flexibility.
Buying a home makes perfect financial sense to some, while renting is
better for others. You need to determine if you can actually afford to buy a
home and then you need to consider the many other factors that come with
homeownership. How long will you stay in your home? How will your home
appreciate over time? Can you afford the taxes that come with homeownership?
These are just some of the questions you need to consider. Our counselors
are trained to advise you on the best choice, taking into account your
personal financial situation.