It is the age-old question, why should I buy when I can rent
Well there are many pertinent responses to this inquiry.
1. It is your own space, not regulated by a landlord.
2. On a place that you own you can make design changes whereas,
with most rentals you won’t even be allowed to switch
3. Since you have more rights as a homeowner, you are in a
more primed position to take a more active role in the surrounding
property and neighboring community.
Most importantly, however, when you own a home, the money
you spend on your payments is actually working for you by
allowing you to gather equity on your home. The longer you
own a home and more payments you make the greater equity you
have in your home.
One of the greatest benefits of having equity is getting
the opportunity to use it. Examples of how these funds may
be spent include: applying it to home remodeling and improvement
projects, the purchase of a new car, paying off of accrued
debt, funding your college education or additional schooling,
and | or simply saving extra dollars for a rainy day.
There are two major ways in which you can cash in on your
equity: home equity loans and a home equity line of credit.
Home equity loans are used like any other loan. The terms
of the loan regulate how much is borrowed and for how long.
The fixed rate payments of a home equity loan are appealing
to people who need the money for a designated purpose.
A line of credit borrowed from your home equity is something
from which you can continually draw. Rather than using the
funds for a specific reason, they can be used for anything
at any time.
Whichever type of equity you choose there are benefits over
other types of loans. They require less time in terms of both
the application and approval periods than other types of loans
and credit applications. Plus, they also offer lower interest
rates than the competition; you may have the opportunity to
deduct your interest for tax purposes.