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Reasons for Owning a Home vs. Renting

There are many advantages and disadvantages to either owning or renting a home. Deciding which option is best for you depends on many factors such as your financial situation, whether you see yourself moving within the next few years, the current market status, whether you like to do home improvement projects yourself, and many more. To help you determine whether buying a home or continuing to rent is the right choice for you, we compiled a list of factors to consider for each.

Reasons to Rent:

  • Little to no maintenance expenses—When something breaks, such as the A/C unit or hot water heater, it’s your landlords responsibility to fix, not yours.
  • Flexibility—Renting allows you to move as you please. If you’re expecting to move within the next few months or couple of years, renting may be a better choice.
  • Income uncertainty—If you’re expecting a pay cut or negative change in income in the near future, renting is a more favorable option to owning a home since you have the option to more easily move to a cheaper residence.
  • Utilities can sometimes be included—In some cases, the landlord may include utilities such as water, sewage, and electricity in your rent.
  • Build your credit—Just like paying your bills on-time, making timely rent payments consistently can build your credit, allowing you to become better qualified for a mortgage or loan in the future.

Reasons to Own:

  • Build equity—When you own a home, you have the ability to build equity. When renting, you are adding equity to your landlord’s bank account, which benefits them, not you. According to Zillow.com, a general rule is if you intend to stay in your property for at least five to seven years, the costs of purchasing a home are more likely to be offset by accrued equity and increased housing value. Your home’s equity can be used to make major purchases if needed down the road. For example, if you need extra money to pay your child’s college tuition, you can borrow against the equity in your home (refinance) in order to pay for this expense. In some cases, when refinancing you can reduce your interest rate depending on the status of the market.
  • Gain tax advantages—Mortgage interest is tax deductible, as well as your property taxes. In addition, when selling your home if you meet certain requirements, the IRS will not apply a “capital gains” tax on your profits. This means you can keep the first $250,000 in profit you make when selling your home if you’re single, or the first $500,000 in profit if married.  Also, if you paid points to get a better rate on your home loans, that same year you may be eligible for a tax break.  Discover more commonly missed tax deductions you may qualify for here.
  • Stability—A home provides a permanent place where you and your family can live and grow. Your mortgage payments generally remain the same, making it easier to plan for future expenses, while your landlord has the ability to increase rent.
  • Freedom to decorate and build—When you own a home, you are able to paint and remodel as you please. This is typically not allowed when renting, or if you do, upon leaving you usually have to return the home back to its original condition.
  • Get involved in the community— Homeowners are often more involved in the well-being of their communities. You can get to really know your neighbors and bond with them through neighborhood initiatives and programs to better the community.

Buying a home is a major decision that should not be taken lightly. If you think you’re ready to buy, or have additional questions about getting pre-qualified, current rates, and more, apply for a home loan online today!

This material was prepared for general distribution. Although all blog posts are intended to be accurate, the information and third-party links provided in the Mariner Finance’s blog are intended for general knowledge and educational purposes only without any warranties, implied or express, of any kind. The posts do not constitute investment, financial or other advice. Authors may or may not be licensed financial professionals; for specific advice, seek the input of a licensed and trained financial expert. Mariner Finance’s blog entries may also be viewed at www.pioneercredit.net and www.personalfinancecompany.com.

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†We offer personal loans starting at $1,000 with a maximum up to $25,000, depending on your state of residence. Loans between $1,500 and $15,000 may be funded online. Loans less than $1,500 or greater than $15,000 are funded through our branch network.

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. As a result, under our customer identification program, we must ask for your name, street address, mailing address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

*The process uses a “soft” credit inquiry to determine whether a loan offer is available, which does not impact your credit score. If you continue with the application process online and accept a loan offer, or are referred to a branch and continue your application there, we will pull your credit report and credit score again using a “hard” credit inquiry. This “hard” credit inquiry may impact your credit score.


Mariner Finance, LLC, NMLS No. 166564 (www.nmlsconsumeraccess.com)
8211 Town Center Drive, Nottingham, MD 21236. Telephone Number 877-310-2373.

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