Harmony Homes Realty, LLC.

RENT VS. OWN
Monthly Payment (Principle, Interest, Taxes & Insurance) No Repairs (misconception - usually allotted in rent payment) No Equity No Control Over Rent Increases Easier if Moving Often Monthly Payment = Expense	Monthly Payment (Principle, Interest, Taxes & Insurance) Repairs Build Equity Fixed Monthly Payment Homestead Exemption - Property Taxes are lower for Primary Residences Freedom to Make Changes Monthly Payment = A$$ET Tax Shelter - Deduct Mortgage Interest and Property Taxes Appreciation – Built in Savings

Rent vs Buy Calculator

Mortgage Calculator © ML

A common misconception is that home ownership has more expenses associated with it than renting. When initially purchasing a home, there will usually be more costs up front. When renting a home you simply have to come up with a security deposit and when purchasing you need money for a down payment and closing costs. However there are some places to help first time homebuyers to cover part or all of their closing costs. But, after the initial investment, you are often saving money by owning your home. Do not think that you don’t have to pay property taxes and insurance as a renter. Landlords are in the rental business to make money, so they are making sure that your rent is covering their costs, including keeping some in reserves for repairs they know they’re going to have to make. Also, because they have no homestead exemption on the property taxes for their rental, you’re actually paying for their higher taxes and higher insurance than you would be if you owned the home. On top of paying lower taxes, as a home owner you can deduct the interest you pay and the property taxes at the end of the year. As a renter, you’re paying the interest and taxes and then the property owner is deducting it. At the same time, you are paying down their mortgage every month. Wouldn’t it be nice to take your money and invest it in something you own? Turn your expenses into an asset.

When you own your home you can deduct the property taxes and interest paid against your income at the end of the year to reduce your taxable income.

A home is a great way to start a forced savings account. As you pay your monthly mortgage payment, a portion of that payment goes towards the principal of the loan and you build equity in the house. Also, in a normal market a home appreciates in value usually at a similar rate to the inflation rate. Overall, history has shown that owning a home is one of the best investments.

When you rent you have no control over the rent increase each year (or as often as the landlord chooses). If you have a fixed rate mortgage when you purchase a home, your monthly payment remains the same for the life of the loan. So in ten years your rent might be significantly higher than it is now.

When you are renting a property, there are limits on what you can do to your home. Also, you may not want to invest a lot of money painting or choosing carpet or window treatments for the benefit of the landlord. When you own your home, you can improve it as you would like and you can benefit from those improvements if you were to ever sell the home.

First Time Homebuyer Wizard - Choose your county and it will show programs available to first time homebuyers in your area and lenders that can help you with them.