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House prices come with a lot of digits, but that shouldn’t scare you away from buying a home. A mortgage”as opposed to rent”allows you to slowly purchase your home over time. So, instead of paying rent and helping somebody else pay their mortgage, why not invest in your own property?

According to the InCharge Institute of America, there are many benefits to homeownership. Here are some reasons why paying a mortgage and owning your own home is better than paying rent for a temporary living space:

The property you purchase now will most likely be worth more in the future.
With fixed-rate mortgages, you can rely on the predictability of monthly costs.
You have greater privacy and freedom to make your home your own, since there is no landlord overseeing the property.

Of course, owning a home and taking on a mortgage is a big responsibility. The InCharge Institute advises that you take the following into consideration before embarking on homeownership:

You will bear the responsibility for maintenance of your home, including repairs that can range from inexpensive to complex and costly.
Owning a home is a long-term financial commitment.
Take other costs into consideration, such as the down payment, closing costs and moving expenses.
Your mortgage payment may be higher than what you currently pay in rent, so make sure you can afford the increase.

In comparison, renting comes with additional costs, as well, such as security payments and damage fees you may incur.

Whileit is true that purchasing a home can be initially more costly, it can also work to your advantage, functioning as a savings program you can’t quit on. If you will be residing long-term in the same area, then you might as well be turning those monthly payments into property ownership. If this sounds like an investment you’re ready to take on, it might be time to go house hunting.

Published with permission from RISMedia.

Knowing that you’re ready to buy a home can be an exhilarating feeling, except it’s often followed by panic. While experience is the best teacher, there are some things you can do to regain control of the home-buying experience. One of them is getting accustomed to the terminology, especially when it comes to the various types of mortgages available.

LearnVest offers the following list of mortgage terms any first-time homebuyer should add to their dictionary:

Adjustable-Rate Mortgage (ARM). An adjustable-rate mortgage is a home loan with fluctuating interest rates. ARMs are very much a game of chance, starting off with a period of 3 – 10 years of low fixed rates, followed by an adjustable roller coaster-rate period. In short, your interest rate will reflect whatever is happening in the market. This might be highly anxiety-inducing if you’re not planning to sell by the time the rates adjust higher, but there’s a chance that you will end up paying less if market trends are in your favor.

Fixed-Rate Mortgage. This is the total opposite of the ARM. Instead of offering a fluctuating rate, you sign on for the same rate throughout the course of your mortgage loan. There are no surprises here, but the downside is that you must pay the same fee even if the market rates drop. There is some wiggle room thanks to refinancing, but fees and potential hassles come with it.

Assumable Mortgage. This is a wild card that only becomes possible once in a blue moon. For this kind of mortgage, you take on the sellers mortgage loan instead of taking out a new one for yourself. This helps when the market rate is higher than what the seller had it fixed at, plus it cuts some fees in the process. Yet, be aware that the sellers lender must give you the green light, as well. The other curve ball is that the home-selling price might surpass that of the mortgage balance.

Balloon-Payment Mortgage. This mortgage option is like playing a game of “Super Smash Brothers” in which you’re given 5 to 7 years of low monthly payments followed by a sudden death knockout match where you must make a giant final payment. Homebuyers tend to pick this type of loan because they expect to sell their home before the final payment while enjoying low interest rates during their ownership years. Another solution is applying for a new loan, but, of course, whos to say youll get it? And thats where the sudden death part comes in: the balloon may just explode.

Published with permission from RISMedia.

Published with permission from RISMedia.

Published with permission from RISMedia.

Transform your bathroom into a cozy oasis this winter with these tips.

Towel Warmers

Capture the feeling of a warm, fluffy towel fresh out of the dryer with wall-mounted towel warming racks.

Heated Toilet Seats

Todays state-of-the-art commodes are designed with heated seatsone of the most underrated luxuries in the home.

Radiant Heat

By installing radiant heat beneath the tiles, you can keep your feet warm all winter long.

Steam Shower

When you feel the cold deep in your bones, the best way to get rid of it is by spending a few minutes in a steam shower and letting the warmth envelope you.

Published with permission from RISMedia.