Owning A Home More Affordable Than Renting in Central PA
Many people feel like they cannot afford to buy a home and that renting is their only option. However, research is continually showing that owning a home is more affordable than renting in most places throughout the country. People are concerned about the costs that come along with homeownership, but they are failing to realize that renting comes with a lot of costs of its own. Let’s examine the reasons why owning is ultimately more affordable than renting.
Every month that you pay rent you are missing out on the opportunity of investing in your own home. Each rent check goes to paying someone else’s mortgage. Over the course of many years you are losing over a hundred thousand dollars in rental costs alone. You are missing out on the opportunity of investing into your own property and instead are paying for someone else’s home.
One very expensive aspect of renting is the uncertainty of what your monthly rent will be after your lease expires. Rental prices are steadily increasing throughout the country. Each time your lease needs to be renewed you are risking that your rent amount may increase by as much as 14%. Most renter’s incomes do not keep up with this increase in rent meaning more of their hard earned money goes to rental costs each year. Homeowners with a fixed rate mortgage do not need to worry about their mortgage increasing each year and can enjoy any increases in income they may receive.
Costs of Moving
Renters move much more often than homeowners do and moving can be very costly. The costs of renting a moving van and equipment and security deposits really add up. Additionally new furniture usually needs to be purchased to accommodate the new home you move into. Moving frequently comes at a premium that makes renting more expensive than owning.
Right now there countless affordable mortgage options that allow homebuyers to put as little as zero to 3% down on a home. Mortgage insurance premiums have dropped since the beginning of the year and interest rates are continuing to remain at historical lows. All of these factors make home mortgages obtainable and inexpensive. Lock in a fixed rate mortgage at a low interest rate and sleep well at night knowing you are getting one of the most affordable mortgages in a long time.
Financial Benefits of Owning
There are numerous financial advantages to owning a home. As time progresses and with each payment you make you are increasing the equity in your home. Additionally you are staving off inflation since you’ve already purchased your home and can enjoy the benefits of home values rising. Every year you can write off the interest you’ve paid on your home loan as a tax deduction.
In Central Pennsylvania the average home price is just below the national average. Buying in Central Pennsylvania is a wonderful and financially wise decision to make for your family and will save you thousands of dollars over the span of owning your home.