Home ownership is part of the American Dream. However, thanks to rising prices, tight lending practices and reduced inventory, the dream is dying. And that is tragic, since studies reveal that people who own homes enjoy greater peace of mind and higher net worth than their rent-paying peers. This is because homeownership is a form of forced savings. Every time you pay your mortgage, you contribute to your net worth. Whereas, each time you pay your rent, you are increasing your landlord’s net worth.
Other Benefits to Home Ownership:
- High demand and a limited supply of rentals have pushed rents to all-time highs. As a result, in Southern California, in many cases, monthly mortgage payments are comparable (or even less) than lease fees for similar properties. The benefit to home ownership, in this case, is that a mortgage is paying down the principle rather than lining the landlord’s pockets.
- No need to worry about rent increases. In Orange County, long-time residents of Huntington Manor Apartments received notification that their rents would be increased by 32%. Homeowners can rest assured that their monthly mortgage payment will remain steady for the life of the loan.
- If you ever want to downsize, even if the home has not yet been paid off, you could potentially use the home’s equity to refinance, for a lower payment, or no mortgage at all.
- Better yet, if you purchase several properties, you can allow tenants to pay off the mortgages while you use the rental income to supplement your retirement income.
- Homeowners get to call the shots without asking someone else’s permission. If you own a home, you can paint it whatever color you like and adopt as many pets as you see fit.
- Your FICO scores matter either way. Few landlords want to lease their property to someone who can’t afford to bills. Since good credit is required for leasing as well as purchasing, why not use it to buy a home?
Rent Vs Own
According to RentCafé, the average rent for an apartment in La Verne, where Exact Escrow is based, is $1,830. Rental houses (even small ones) go for at least $2,000 per month. Rent.com reports that 3,212 (or 28% of the households in LA Verne, CA) are renter-occupied while 8,024 (or 71%) are owner-occupied. So, instead of paying someone else’s mortgage, why not check out the new purchasing programs available for first-time buyers?
Mortgage lenders are easing up requirements on home purchases, which required 20 percent or more down immediately after the housing bubble crashed in 2008. As the housing market improves, mortgage lenders have made a multitude of low- and no-down payment mortgage programs available to U.S. buyers. What’s more, according to MortgageReports.com, the products aren’t just for first-time buyers, either. Repeat home buyers are getting access to the same zero-down products as everyone else. So, now is the time to buy…while prices remain competitive.
About Exact Escrow in La Verne, California
If you decide to buy a home, when it comes time to choose an escrow company, please consider Exact Escrow Inc. We are a full-service independent escrow company dedicated to exceeding our client’s every expectation. Our goal at Exact Escrow Inc. is to make sure even your most complicated transaction closes smoothly and efficiently. Call today to speak directly to an escrow officer (909) 542-1062.