Written by First Time Real Estate

1.    Start Building Equity

You want to build equity because it is one of largest sources of net worth for an individual and can be borrowed against if you need it in the future. You build equity on a home as you pay off your mortgage. Home equity is the value you own on your property calculated by the current market value minus what you owe on the mortgage. Value builds over time as the property appreciates and you pay off your mortgage – and property values are increasing as the housing market heals along with the economy.   Why keep throwing your money away on rent when you could start putting it toward investment in your future?

2. Mortgage Rates Are Low

Interest rates for 30-year fixed rate mortgages are around 4.3 right now which is historically low. They’ve been rising for the past year or so but they’re still below the average or 6 or 7%. Now is the time to secure your rate, chances are they’re only going to rise as the economy continues to heal and normalize.

3. It’s Cheaper!

Rent is on the rise in California and you don’t want to spend your money year after year with nothing to look forward to except further inflated pricing. Most home buyers choose a 30-year fixed rate mortgage which means they will pay the same rates no matter inflation for the entire duration of their loan. And the more money you put down, the lower your payments are. The best thing to look forward to? Once you pay off your mortgage, you’ll no longer have monthly “rent” payments.

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5 Really Obvious Reasons It’s Time To Stop Renting And Buy