Should I buy a house? 10 reasons to say “Yes”

• Long-term stability
• Room to grow
• More privacy
• Control over your space
• Consistent budgeting
• Ability to build home equity
• More potential tax benefits
• Opportunities to grow your credit score
• Unique financing options to fit your lifestyle
• Potential to refinance for better terms down the line

1. Long-term stability

If you’re not ready to put down roots, renting can often be the best fit for you. But when you find the place you can see yourself living for the long term, you can’t beat the stability of homeownership. Depending on your loan terms, a mortgage is typically a 15 to 30-year commitment. Even if you sell your home before the mortgage term is complete, it takes at least a few years of staying put for your home loan to be a good investment. That’s years of getting to know your community, settling into your space, and not living with one foot out the door wondering where you’ll live next.

2. Room to grow

Kids. Pets. Plants. Whatever you want more space for, owning a home can deliver. And while apartments are limited to the square footage on your lease, your home has the potential for additions and renovations when your needs change (and if you do decide to renovate, there’s a loan for that).

3. More privacy

Sharing a wall with neighbors is, as the kids say, “not it.” One of the biggest benefits of owning a home is the privacy of a space that’s truly yours, both indoors and out. Especially with more people working from home, having your own quiet, dedicated space is a game changer.

4. Control over your space

One of the biggest downsides of renting is having to leave the space as you found it when you move out. You also have to adhere to the landlord’s policies. When you own your home, you can decorate it however you want, fill it with as many pets as you want, and generally make it feel like home. Just keep in mind that if your neighborhood has an HOA, they may have a few guidelines you’ll need to follow.

5. Consistent budgeting

If you’ve been renting long enough, you’ve probably noticed that rent rises every time you renew your lease. Between that and miscellaneous amenity fees and utilities, it can be hard to budget consistently when you rent. With a fixed-rate mortgage, you can rely on the same monthly payment due every time, until you pay off the loan or refinance for a new rate.

6. Ability to build home equity

This is one of our favorites. Home equity is the amount of your mortgage that you’ve paid off. In other words, the percentage of your home that you own. Unlike monthly rent, every payment you make on your mortgage gets you closer to paying it off entirely, all while your home equity keeps accumulating. And even though renovations may seem expensive upfront, those actually boost your home equity, too. If you need to, you can also leverage your home equity for more flexible funds with a cash-out refinance.*

7. More potential tax benefits

Taxes aren’t anyone’s favorite subject, but you’ll want to hear this one. When you switch from renting to homeownership, you could potentially qualify for more tax benefits like:

• Mortgage interest (applies to the interest paid on the first $750,000 of your home loan)
• Discount points (pre-paid interest on your mortgage)
• Property taxes (exact amount depends on where you live)

How much you can actually write off will depend on your unique financing situation.**

8. Opportunities to grow your credit score

Not only are there plenty of home loans that don’t require a high credit score, but each monthly payment you make helps improve your credit history. You can even leverage that healthier score down the line to get better terms when you refinance your mortgage. Win-win.

Pro Tip: Got credit challenges? We’ve got strategies to help you navigate them here.

9. Unique financing options to fit your lifestyle

Rent is, well, rent. Not much about it changes regardless of your circumstances. When you apply for a home loan, you can choose from a wide variety of mortgages that are actually built for your unique goals. For example, many first-time home buyers enjoy the flexible down payment and credit requirements that FHA loans offer. If you’re not quite ready to take on a house, a condo loan is a great way to transition. And if you qualify, VA loans offer some of the best benefits around.

10. Potential to refinance for better terms down the line

Even though a mortgage is a big commitment, it’s actually more flexible than you think. The rates you have now don’t necessarily have to be the rates you have forever. As you build home equity and credit, you can eventually leverage that to refinance your loan for different rates or cash out. You can even refinance to a different mortgage type altogether (from FHA to Conventional loan is a popular route).

Are there any reasons I should NOT buy a house?

The answer to “Should I buy a house?” really comes down to whether or not the timing is right for you. A mortgage can involve more upfront costs than renting, and a home loan application is a lot more involved than applying for a rental. When you own, you’re also responsible for any maintenance issues that arise. So, if the flexibility of renting still outweighs the commitment of a home purchase, now might not be the right time for you. Just remember that even if you’re not looking to buy a home now, it’s never too early to start planning for it.

*Using your home equity to pay off debts or make other purchases does not eliminate the debt or the cost of the purchases, but rather increases the loan amount of your mortgage to be paid according to your new mortgage terms.

**This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before making the decision to buy or refinance a home.

The post Should I Buy a House? 10 Benefits of Owning a Home appeared first on Cardinal Financial.

Home renovations are in. From the fun, DIY couples on TV to your next-door neighbors, it seems like everybody is getting in on home upgrades and the house flipping trend. House flipping has become a lucrative source of income for many people across the country, and while that may not be your thing, there are plenty of upgrades that you can make to your own home to make it more valuable when it comes time to sell.

1. minor bathroom remodel

When it comes to valuable home upgrades, the best pace to start is in the bathrooms. There’s no need to go all out here—minor bathroom upgrades can get you even more money back at resale than you spent to make the renovations without expansion or adjusting the layout. It’ll cost you around $10,500 to replace the tub, tile, floor, toilet, sink, vanity, and fixtures, but on average you’ll get back $10,700 upon resale, which is good for a 102% recoup rate. Tasks such as re-caulking a tub can be done yourself, and if your tub is too big to replace, you can simply re-glaze it to make it look brand new.

2. landscaping

Ever thought your home could use a little something extra? Well, landscaping is an excellent way to add curb appeal and resell value to your home. The average homeowner spends about $3,500 for landscaping services and around $1,500 on a designer. However, the average return at resale for these home upgrades is 100%! Not bad for a few extra plants out front. It’s a bit deeper than that, but many local garden centers offer free design services, so get with an expert and see what elements you can add to give your property some added flair. Focal points such as walkways and fountains have been known to add major value to homes as well, so bring out those gloves and get ready to work.

There are plenty of upgrades that you can make to your own home to make it more valuable when it comes time to sell!

3. minor kitchen remodel

When it comes to kitchens, in most cases it’s more efficient to skip the full-blown floor plan overhaul and just go with a minor remodel. This approach is much cheaper and on average will recoup about 98.5% of its $15,000 cost. Minor remodels are usually the better option when your kitchen is simply in need of a cosmetic update rather than a completely different floor plan. A $15,000 kitchen update usually will cover cabinet and drawer refacing, a new wall oven, cooktop, sink and fixtures, countertops, and flooring. Experts suggest you add new lighting and change the drapes and window molding to get the maximum value out of this home upgrade.

4. turn your attic into a bedroom

Looking to add some extra living space to your home? Turning your attic into a bedroom not only gives you an extra room to house guests or rent out, it also adds quite a bit of value to your home. The average attic bedroom in a two- or three-bedroom house costs around $39,000 and will return about $36,600 at resale, good for a recoup rate of 93.5%. That $39,000 price tag includes a 15 x 15 ft. bedroom, a 5 x 7 ft. bathroom with shower, a 15 ft. dormer, four windows, and a closet. Adding attic insulation will lower your utility bills and a solar-powered fan is another great way to keep energy costs down for the additional space.

5. Add a deck, patio, or porch

A standard-sized, pressure-treated wooden deck with a simple pattern costs about $11,000 and can add about $10,000 to the value of your home, a recoup rate of 90%. One of the main advantages of owning a home is having yard space, so it makes sense that a feature that takes advantage of that space would recoup well. Small improvements and eye appeal elements such as lighting, plantings, and railings can make a big impact when it comes time to close. Depending on the weather in your region, these outdoor elements are a welcome home upgrade that home buyers will surely pay for.

Do you have any advice to offer on home upgrades? Tell us all about it on social media!

The post 5 of the Most Valuable Home Upgrades appeared first on Cardinal Financial.