We first took a look at the many advantages of owning your own home, such as: stabilized housing costs, tax deductions, building equity and place you can call your own. But just like everything else in our lives there is a downside.
With all the good things, owning a home is not for everyone. Buying a home can be a complicated, time consuming, and costly process that can bring headaches along with it.
The Cost of Homeownership
When you are buying a home you may find that it is putting a strain on your financial situation. It may be that the principal and interest on your mortgage payment is less than what you were paying rent, but don't forget that you will have to pay property taxes, homeowner's insurance, utilities, and maintenance expenses.
Foreclosure Can Always Threaten to Show It's Ugly Face
A foreclosure is the sale of a mortgaged property, such as your home, by the lender when the borrower fails to make monthly mortgage payments on a timely basis or completely defaults on the mortgage. A mortgage is a large financial obligation that generally extends over 15 to 30 years.
Lenders can foreclose on a home when the borrowers fail to make their payments. This will result in the loss of your home, but will also cause the loss of your good credit.
Loss of Freedom
Homeowners experience a loss of freedom that renters don't. When you rent you can wait to lease is over or you may be able to break your lease and you can move. As a homeowner you typically have to wait until your home sells or if you are upgrading and renting your old home you will have to find a renter. Remember, you are responsible for the mortgage payments until someone else buys your home. If you think you may be transferred with your job any time soon, it may not be the time to buy a house.
Upkeep expenses and repairs
Some people don't buy a house because they don't want the responsibilities that come with it. Maintenance requirements like: mowing the lawn, touch up painting, and landscaping may be unpleasant for some. For this reason you can always look into buying a condominium. Condo's are basically homeownership without repair and maintenance expenses and responsibilities.
With all the good things, owning a home is not for everyone. Buying a home can be a complicated, time consuming, and costly process that can bring headaches along with it.
The Cost of Homeownership
When you are buying a home you may find that it is putting a strain on your financial situation. It may be that the principal and interest on your mortgage payment is less than what you were paying rent, but don't forget that you will have to pay property taxes, homeowner's insurance, utilities, and maintenance expenses.
Foreclosure Can Always Threaten to Show It's Ugly Face
A foreclosure is the sale of a mortgaged property, such as your home, by the lender when the borrower fails to make monthly mortgage payments on a timely basis or completely defaults on the mortgage. A mortgage is a large financial obligation that generally extends over 15 to 30 years.
Lenders can foreclose on a home when the borrowers fail to make their payments. This will result in the loss of your home, but will also cause the loss of your good credit.
Loss of Freedom
Homeowners experience a loss of freedom that renters don't. When you rent you can wait to lease is over or you may be able to break your lease and you can move. As a homeowner you typically have to wait until your home sells or if you are upgrading and renting your old home you will have to find a renter. Remember, you are responsible for the mortgage payments until someone else buys your home. If you think you may be transferred with your job any time soon, it may not be the time to buy a house.
Upkeep expenses and repairs
Some people don't buy a house because they don't want the responsibilities that come with it. Maintenance requirements like: mowing the lawn, touch up painting, and landscaping may be unpleasant for some. For this reason you can always look into buying a condominium. Condo's are basically homeownership without repair and maintenance expenses and responsibilities.
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