Owning vs. Renting in Colorado

Homeownership rates in the United States has skyrocketed nearly 69 percent! This proves home ownership is within reach for many. Actually, owning a home can be as affordable as renting a home in some places in the U.S. or in some circumstances even more affordable. To find out which one is the better option, determine the cost of the Colorado home's mortgage where you wish to live and compare that to the cost of a similar Colorado home's rental prices. Although it may not be the right choice for everyone, owning a home allows you to pay the same or even less, while building equity. In addition, you can save on federal taxes by deducting the interest paid on your home mortgage.

You can also find further information that will help guide you through the home buying process, click on the How Do I? tab under the 'Help Center' section.

Cost to Own
Choose an area where you would like to own a Colorado home and find out how much it would cost to own the home that you want. Second, figure out the monthly mortgage, taxes, insurance to give you the total monthly payment on the house. Next, find out what an annual real estate tax would be on a home in your price range in your area, get an idea of the annual homeowners hazard insurance cost and divide each of those two numbers by 12, and add them to the principal and interest to get the estimated total monthly payment.

Cost to Rent
You can do an online home search to locate a comparable house in the same location that is available to rent. When you are comparing costs, exclude the cost of utilities if they are included in the rent of the home. 

Consider some of the pros and cons of owning a house:

PROS	CONS
- Builds equity - Tax advantages - Stable payments - Secure place for family - Sense of community	- Maintenance costs - Puts a hold on cash - Value fluctuates - Obligates your finances

Building equity
In the beginning stages of paying mortgage, the majority or monthly payments goes towards paying interest but over time and increasing amounts will pay for the mortgage balance or 'principal'. This process is called 'amortization' and as you gradually pay off the loan the principal decreases and the equity in your home's value. If your home 'appreciates', the value in your home increases and equity continues to build.

Tax advantages
Owning a home allows you deduct mortgage interest and property taxes from your federal and state income taxes. When you figure out your tax savings, you may learn that it is cheaper buying a home than renting a home. Remember, however, to gain these tax advantages, you must file an annual income tax return with the U.S. government, even if you're not a U.S. citizen.

Stable payments
If you have a fixed-rate mortgage, your payments will be the same for the principal and the interest throughout the entire term with slight variation. Unlike renting a home, your monthly payment will stay the from month to month even when inflation comes into play.

Secure place for family
Owning a home, you can be sure that your family always has a place to live, with renting a home, there is no guarantee that you will be able to renew your lease.

Sense of community
Living in a home and a community gives you a special sense of belonging and a care for your neighborhood and neighbors.

After weighing out your advantages and disadvantages of owning a home vs. renting a home such as equity, taxes, payments, cost to rent and cost to loan and make a decision for which is best for you, visit the rest of Colorado Home Loan.org and learn more about choosing a mortgage company, mortgage loan types and mortgage loan programs. 

Fill Out An Application

Take the first step and fill out the online application. Once contacted, we will let you know within a day if you are approved for your loan amount and will close within 10 days.

30 Year Home Saver

Our 30-Year Home Saver Loan provides security and saves you money. In fact, few mortgage companies are AUTHORIZED by the Federal Housing Authority to sell these products.