Why pay the same amount for rent when you can pay that much
with a mortgage while gaining equity? Most people do not think that they can
afford a home and would be pleasantly surprised to find out that it is very
possible. With a mortgage, the initial payments go toward paying the interest.
However, over time, your mortgage payments go to reducing the principal and
increasing your equity. Increasing your equity allows you to plan for future
goals or for your retirement. Your equity even increases as your home value
increases. As a further bonus, your
mortgage interest and property taxes are tax deductible. This is extremely
beneficial in the early years since most of your mortgage payments go towards
paying off interest. This can mean significant tax savings for you. For further
details, consult your accountant.
The allure of renting is very understandable. Your landlord
handles repairs and you are not fixed to one locale. However, before looking
for apartments, talk to a loan officer to see what you qualify for and you may
be surprised to find out you have more options beyond renting and can begin to
search for your dream home.
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