Bad Credit Blues

How Much Will It Cost to Own a Home?

A lot of us tend to hold home ownership us an ideal. We consider renting a thing that is done as a temporary way to get a place to live when there are no other options at the moment. And yet, is buying a home always the right answer? Here is another article with some answers (or more questions): Own or Rent a Home?

If anybody has noticed the news about the high foreclosure rate, it has to be obvious that owning has not worked out well for a multitude of American families. We have to understand that, for most of us, owning does not mean holding a clear deed. Instead we rely on a hefty mortgage. So the truth is that our loan company or bank really owns a large part of our homes.  If the lender has to take the house back, it can hurt our financial life for years.

And along with that monthly mortgage also comes other bills. Remember that you will not be able to call the landlord when the air conditioner or dishwasher don’t work. You will have to call a repair person and pay the bill yourself. You must also factor in the cost of your mortgage interest, property taxes, and homeowners insurance.

Now in some cases, you may also get some more income tax deductibons. Mortgage interest and property taxes can be deducted, but that is only if they are higher than the standard deduction that most taxpayers use.  Many homeowners do not benefit from any more reduction in taxes than if they had rented instead.

Who Should Buy A Home?

It is impossible to give a general answer to this quesstion. But here are some quetions to ask yourself before you buy.

• Do you plan to stay in the home for awhile? People are much more likely to benefit from owning a home over the long term. That gives them time to build up equity and realize more benefits of home ownership.
• Can you get an affordable loan? Make sure you can afford your monthly payments plus other costs without stretching your budget. 
• Do you have emergency money set aside? Most of the people who had home foreclosures or other financial problems last year had no reason to expect them a year or two before. If you do not have enough cash set aside to live on for a few months, you should really ask yourself if you can afford to buy a house. Remember that you will be reponsible for mortgage payments,  homeowners insurance, repairs, and upkeep.

Lots of families are very happy with their own homes. Nobody can question the pride, security, and stability that a home gives people. But many other people realize that they should just keep renting for awhile longer. The right answer to the question of renting or buying really depends upon you.

By the Way…

If you already own a home, fast and free online quotes can help you find lower homeowners insurance rates in minutes.