Buying a home is part of the American dream. It is a significant long-term investment that often represents the foundation of our lives, providing financial and emotional security. It is one of the smartest and, over the long term, most secure investments you can make. It can also be one of the most doable, whether you have a lot of money in the bank or not.
Southwest Funding mortgage originators are trained to work with you on helping you make an investment in your home. We can help you put your home at the heart of your financial well-being.
It’s not just about money.
Few things in life compare with the pride and satisfaction you get from owning your own home. Perhaps you come from a long line of homeowners. Or maybe you’re the first in your family to ever be one. Either way, a home can be the foundation for a lifetime of memories. It may even become a family treasure to be passed down over the years — one that preserves family history and provides your heirs with a welcome sense of financial security.
That’s why we believe it’s so important to choose a home and a mortgage that are well suited to your needs.
Why Buy Instead of Rent?
Decades after the phrase “the American dream” was first coined, home-ownership is still a meaningful goal for a large number of individuals and families. And, as the years go by, you can build ownership interest, called equity, which you may be able to borrow against if you choose. In contrast to renters, most homeowners receive significant tax breaks, because interest paid on a home mortgage is almost always tax deductible.
You will want to consult your tax advisor regarding deductibility of interest. Finally, there’s the personal satisfaction of having a home you can call your own to share and enjoy with friends and family.
Owning Can Cost Less Than Renting
Renting certainly has some advantages over owning. If you need to move frequently, if you’re not at a stage of your life where you want to commit to the responsibilities or costs of maintaining a home, or if your future income is extremely uncertain, renting may be the best option. Just don’t assume that renting is less expensive than owning. A monthly mortgage payment may be lower than the monthly rent. Every month, the payment you make on your mortgage typically adds to the equity you have in your home and makes your home asset a more valuable part of your portfolio. Money paid for rent simply evaporates each month.
Plus, research has shown that in the past real estate has proven to deliver a highly reliable increase in value compared to other types of investing. If you’re renting, those returns are going into your landlord’s pocket, not yours. When you add in the federal tax deductions for mortgage interest and real estate taxes, home-ownership becomes an even more attractive idea.