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Mortgage Loan: Now Is the Time to Buy

For a long time, one of the hallmarks of maturity was buying your own home. For a number of reasons – did you know there was once stigma attached to living in an apartment? – that has become less true. Rentals are ubiquitous and in some places the only really viable option. However, if buying a home is something you can do, it is very likely something you should do. The best way to finance it is through a mortgage loan.

There are any number of valid reasons to live in a rented dwelling. If you live in an apartment complex, there is often an added sense of security in having people on all sides of you. In some other places, home prices are so sky-high that until you sell a million copies of part one of your six-part autobiography, there isn’t a chance of affording anything.

One also needs to take into account the fact of the many conveniences of rental living. You never have to deal with the plumbing yourself. And there’s nothing more fun than doing your own plumbing, especially as there is an absolute guarantee when replacing or fixing anything that water runs through that halfway through you will discover you are missing something vital or that something you thought you didn’t need to repair is now broken. It is incredibly nice to have someone else deal with this.

The same often goes for other amenities such as laundry rooms, pools and most other repairs. This is all certainly true. However, there are at least as many reasons to buy your own home.

There are the simple things, such as being able to put nails in the walls or paint your bedroom door purple without losing your damage deposit. There is the satisfaction of doing some of your own repairs. And, while it’s nice to have someone else fix stuff, you are less dependent on someone else’s timetable – after all, there are good landlords, bad landlords, and really bad landlords. In this chaotic financial time, there is another reason to buy your own home if you are in a secure position to do so. There are an increasing number of unfortunate circumstances where landlords default, causing their faithfully paying tenants to wind up on the street.

This aside, the prime reason to buy your own home is that it builds equity, which can be used to help further other aspects of your life. Paying on a rental for 30 years gets you nothing in the way of equity, paying on your own home gets you a lot.

It is, of course, important to make sure that you are in a good position when you decide to take out your mortgage loan. You need to ascertain that your finances are in good shape and that your credit rating will get you a decent interest rate. Too high an interest rate, and you may wind up being unable to pay, thus losing your equity. You need to know how much of a monthly payment you can make on your new home and to stay within that budget.

Another thing to figure out is what kind of mortgage loan will work best for you. The most common are fixed rate, adjustable rate, and interest only. Different loan types work better for different people. There is no one way which is best for all. So, do your research, and then start looking for your dream house.