Are you currently renting your home? You’re not alone—Statista reported that around 43 million housing units in the US were rented in 2020. While renting offers flexibility, it also comes with drawbacks that might make you consider homeownership.
If you’re contemplating making a change, it might be time to explore mortgage options. As a Florida mortgage broker, we can guide you through the process. Here’s why transitioning from renting to owning could be a smart move:
Cons of Renting
Higher Long-Term Costs
While renting might seem affordable in the short term, it can become more costly over time compared to owning a home. Renting means ongoing monthly payments with no end in sight. In contrast, with a mortgage, you’re working towards full ownership. Once the mortgage is paid off, you’re free from monthly payments, leading to greater financial freedom. Plus, favorable mortgage rates—often available through a broker—could make your monthly payments lower than rent, freeing up more of your income.
Potential for Rent Increases
Landlords can increase rent when your lease expires, whether it’s annually or biannually. This could lead to higher costs, particularly if the landlord decides to raise the rent significantly. With a fixed-rate mortgage, however, your payments remain consistent, allowing for better budgeting and stability in your financial planning.
Limited Control Over the Property
Renting comes with restrictions that can limit your ability to personalize your space. You might need permission to redecorate or renovate, and there may be restrictions on having pets. Homeownership, on the other hand, offers the freedom to make changes to your property as you see fit, from painting walls to remodeling or welcoming pets.
Lack of Equity Building
Renting means you’re not building equity in a property, which could limit your future financial options. Owning a home allows you to build equity, which can increase your financial stability and give you more opportunities for future investments or passing the property down to family members.
Ready to Make a Change?
If these cons of renting resonate with you, it might be time to consider a mortgage. As a leading mortgage broker in Florida, we’re here to answer your questions and help you navigate the path to homeownership. Contact us through our website to discover how we can assist you in stepping onto the property ladder.