Owning a home can be as affordable as renting, and in some part of the United States, it can be more affordable to own rather than rent. Borrowers can compare costs by researching home prices in the areas they want to live, calculate what a mortgage loan would cost them, and compare that to the cost of renting a similar type of home.
While homeownership is not the right option for everyone, the advantages are many. Some of those advantages include building equity and earning tax advantages. Borrowers can build their wealth as they gain more equity over the course of time. Additionally, per Internal Revenue Service code, loan interest is tax deductible.
Homeowners must be prepared to consider maintenance costs of keeping their home in good condition. Also, the value of a home can fluctuate in value. Buying a home requires a significant amount of cash upfront, so selling it during the initial years of ownership may be difficult and something to consider in light of job and other commitments.