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The Front Porch Blog

Education on all things homeownership

Stop Making Your Landlord Rich!

July 14, 2020 Homebuying
Man and woman embracing in front of house with a

Many renters don’t know how easy it may be to purchase a new home, nor realize their mortgage payments could actually be equal (or less) than what they’re spending monthly in rent. Plus, homeownership is a great way to establish roots within your community and provide stability for your family - all while building equity over time.

In many cases, the cost of homeownership is actually less than renting.

The cost of renting can quickly add up to the cost of a home. If you were to pay $1,200 in rent per month for 10 years you would have paid $144,000! In the same period of time, you could have been paying down a mortgage on a home of your own. Lennar Mortgage offers many low down payment options that may help make homeownership much more attainable than you think. To view personalized scenarios and calculate how much home  you can afford you can utilize our mortgage calculators. Our affordability calculator can help determine what the best home options are for you.

With stable monthly mortgage payments, you don’t have to worry about unexpected, sporadic rises in rent.

When purchasing a home, the most common loan includes a fixed-rate mortgage. Fixed-rate mortgages have consistent principal and interest payments month over month. Mortgage rates are more dependable than renters’ fees, as mortgage payments remain consistent even if the cost of homes in the area rise, or the market changes. The only changes in your payment will be if the property taxes in your area rise, otherwise your payments will remain at the same locked rate. Fixed-rate mortgages give you peace of mind and dependability when calculating your monthly costs.

Experience the freedom to renovate and make your home feel truly “yours”.

At Lennar Mortgage, we understand that a home is more than just four walls and a roof. It is a place to build a life for you and your family, create memories, build community ties, and achieve financial stability. Buying a home is as much an emotional decision, as it is financial. Owning a home provides you with the creative freedoms to decorate and renovate your home however you wish. In addition to creating a space that you feel at home in, you could be adding value to your home.

Owning a home is an investment in your future and in your equity.

With each on-time payment made you build home equity. Home equity is the difference between the amount you owe on your home and the market value of your home. And because you own your home, any additional improvements or renovations you make can actually increase the value of it. Renovations such as adding a deck to the back yard where you may watch your kids play, could bring up to a 15% increase to the value of your home.

Make a positive impact on your credit score when paying down your home loan on time.

Though there are many factors that are taken into account in the calculation of your credit score, it’s no secret that payment history is a key component. Making on time payments monthly can make a positive impact on your credit score as it shows lenders that you are dependable. In addition, having a mortgage loan on you credit file can increase your credit mix, showing borrowers that you are able to maintain different types of loans responsibly.