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Owning vs. Renting It is important to have a clear understanding of your financial situation to help you decide whether or not you are ready for the commitment of home ownership. In most cases, if you can afford to purchase your first home you place yourself in a stronger financial position in the present and future. This is primarily because you will be building equity (dollar value) by paying down the balance of your mortgage (the portion of your home’s value that your mortgage bank owns) by making your monthly mortgage payments. You also will be building your credit score by making monthly mortgage payments on time. Also, there are tax breaks associated with home ownership:
If you determine that buying a home instead of renting is the choice that is right for you, you must then determine how much home you can afford based on your budget. Now that you have determined the level of financial commitment you are comfortable with you must research your area’s housing market and then find the mortgage that is right for you. |
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