Sending payments on your mortgage every month is one of the biggest expenses most of us face, and maintaining a home is not necessarily easy on the pocketbook either. Homeowners can spend thousands of dollars a year fixing or replacing items around the house.
If you happen to be paying off an adjustable-rate mortgage, you’re probably watching mortgage rates closely to be prepared for any upcoming and unwelcome adjustments to your payments.
Despite all of that, the good news for homeowners, as well as prospective buyers, is that new data from Bank of America shows the vast majority of renters who took the leap into homeownership have no regrets about their decision.
In fact, the report shows that 93 percent of people who bought a home are happier than they were when they were renting. The study, based on a national sample of more than 2,500 people, asked several questions, including “Does owning a home make you happier than renting?”
In addition, more than 80 percent of homeowners said they wouldn’t go back to renting, 88 percent of homeowners agree that buying a home is the “best decision they have ever made,” and 79 percent believe that owning a home has changed them for the better.
According to the study, more than half of current homeowners define a home as a place to make memories, while 42 percent view a home as a financial investment.
With that in mind, avoiding some big mistakes when applying for a mortgage and purchasing a home can further help make sure you’re one of the happier homeowners.
Building equity
One of renters’ biggest regrets, 52 percent, is not building equity. Equity is the difference between what your home is worth and what you owe on your mortgage. The longer you own your home the more equity you build as the home value appreciates. Renter’s are essentially helping their landlord build equity.
If you avoid overspending when you purchase your home, you are able to build equity more quickly. Spending too much upfront, and possibly spending more than it is worth, will result in struggling to build equity in a timely manner.
Too much home
Zillow also determined that renters wished their apartments were larger, with 40 percent saying that their homes were too small, but only 21 percent of owners thought so. Buying the biggest home possible is appealing, but buying one that is too large and more expensive, can cause more trouble. Home maintenance doesn’t come cheap and the larger the home, the bigger the drain on your finances.
Underestimating the cost of a homes
Often, purchasing a home turns out to be more expensive than buyers think. In addition to the purchase price and down payment, there are closing costs such as title policies, loan origination fees, appraisal fees, recording fees and inspection costs. Being house-poor, or struggling to pay your mortgage each month has an impact on your lifestyle and overall enjoyment of your home.
Stay prudent about renovations
A large number of renters, 52 percent, regret not being able to customize or improve their homes. But homeowners should be aware of how costly renovations can get. While you need to have enough cash to cover expected costs, owner’s also need to be prepared for unexpected costs. It’s not unusual for renovations to go over budget.
In addition to following these guidelines, having the counsel of a local realtors who knows the market conditions, communities, neighborhoods, and schools can further ensure you don’t end up with buyer’s remorse.
The experts at The Platinum Group REALTORS® will take the time to understand your individual situation and help you find a home that suits your family and your lifestyle.
The number one independent real estate firm in Colorado Springs, The Platinum Group, REALTORS®combines top realtors with the best tools and resources to provide home buyers with platinum service and platinum results.
With over 80 percent of their business coming from referrals, The Platinum Group, REALTORS® deliver top quality customer service the utmost honesty, integrity and attention.
