Buy Home vs. Rent

You Will Own Your Home at the End

The reality is that no matter what kind of loan you get for your home, if you secure a loan and pay for the entire term of the loan, at the end, it will be free and clear, and your home will finally be yours. The home will have accumulated equity that is now yours as well, and you will eventually have achieved the dream of owning your own home. According to Investopedia, a home equity is the value of a home which should be equal to the local market value.

To most investors, home equity is part of the largest amount of their total net worth. Buying a home is a long-term investment, meaning, you should not have a goal of making short-term money from it. Comparing to any other long-term investment available, buying a home is still the low risk investment, as everyone needs a place to live. For this reason, having a help of an experienced real estate agent to help you make this investment is crucial.

You Can Rent It out Just in Case

Nowadays, it is essential to be flexible and always to be ready for plan B. There are many reasons of why someone would need to rent out their house. It could be a job opportunity in another city or an unexpected financial situation. No matter what the case could be, as a homeowner, you can always rent out your house, and the rent can pay for your house mortgage. Of course, the ultimate reason to buy a home is to live in it, but this is a possibility just in case you temporarily cannot.

Another reason to have an experienced real estate agent can help you in buying your home is that the agent can show you the rental market in the area you are looking to buy.  Should you ever need to rent out your home, you need to make sure the rental price would assist in paying your mortgage and property management fees. According to a study done at Harvard University, the rental market is currently booming, therefore if you own a home, it is should be effortless to rent out for the right price, as you continue to invest in your home and pay off your mortgage.

Tax Credits Every Year

The interest on your home loan usually is included in your monthly mortgage payment, and your finance charges continue to adjust downward as time passes on your loan. According to Bankrate, interest paid for your home loan is tax deductible, (up to 750k) also any points you pay to lower your interest rate during the purchase and refinance process that is part of your closing costs may be deductible (always consult your accountant). Married couples receive the most significant deduction following by the head of the household status.

This tax deduction may assist when completing your tax returns and create a larger refund.  It is as if you had saved money amount throughout the year. In this case, hiring an experienced CPA is crucial for you to receive as much as you can from your refund. Indeed, it does make a financial difference in the first year of buying your home.

Buying a home is a crucial decision in your life, and it takes some steps to get ready. However, the benefits of having a home are significant, both financially and emotionally. If you are planning to reap the benefits of buying a home, there is a preparation period you need to be aware, so you can have time to get your finances ready for a down payment and your credit score prepared for this exciting step you plan to take.


Talking to a home loan specialist is the best step you can take. A home loan specialist can walk you through the steps to getting ready for this vital decision. At American Mortgage Resource, Inc. your success in buying a house is our goal. Contact us today and let us get you on the right path to owning your home.


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Investopedia Staff (9 Nov. 2006.). Home Equity. Investopedia. Retrieved from

JCHS (17 Jun. 2015.). The state of the nation’s Housing 2015. Retrieved from

Bankrate (n.d.). Mortgage Interest Tax Deduction Calculator - Bankrate. Bankrate. Retrieved from

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