The Benefits to Homeownership Outweigh Mortgage Risks

For someone thinking about purchasing there first home, things can be a little intimidating. You just have to keep telling yourself the benefits far outweigh the risks. 

There are many benefits to owning a home. Sure, there are the usual obstacles to get over. First, most people don’t want to put a lot of their own savings into it, they’d rather just rent. 

Also, they don’t want to have to go through the lengthy process of buying the home and even searching for the right home in the first place. Then they don’t want to have to go through the mortgage process and go into debt to get the home. While these are definitely disadvantages, the simple fact is that there are so many major advantages to owning a home that going through these steps ends up being well worth it in the long run.

The most notable benefit to owning a home is equity. Equity is the value of the home. When mortgaging a home, your initial equity is the down payment you made on the home. As you make additional payments, your stake in the equity of the home rises (since the lender owns the rest of the equity). However, it is also important to note that equity also rises when the value of the home rises. If you are currently renting you are not only building equity for your landlord in most cases the rent you pay is usually a few hundred dollars more then what their mortgage payment is with their lender. When you own the home the equity is solely yours, the equity of the lender does not increase. Also because of recent foreclosures & short sales, there are actually quite a few homes on the market that you could actually purchase with allot of existing equity already in them by the time you close. Due to a lower sales prices vs the actual value of the home. This is why many homeowners are sitting on gold mines.

This equity in your new home can be used for valuable things such as home equity loans and home equity lines of credit. These are low interest loans with the home used as collateral. Equity opens up many valuable new doors and is just one reason why owning a home is one of the best things you can ever do.

Another advantage is the tax savings. So not only is your monthly mortgage payment cheaper then what it would be renting a home, Every dollar of interest paid in each month on the mortgage payments can be used as a tax write-off. This can be a very considerable amount, especially early on in the loan when the interest is front-loaded, and it can save you a lot of money in taxes or get you larger refund. 

Of course, it really comes down to the simple fact that you own a home. That home is yours and that with that comes a certain pride. Owning a home is one of the most important things you will ever do. Don’t pass it up, don’t choose to rent if you don’t have to. There are just too many advantages of owning a home to pass up.

About the Author:

ZFG Mortgage headquarter in Tulsa, Oklahoma is the #1 rated mortgage lender in the state of Oklahoma. At ZFG Mortgage we pride our selves in offering the lowest mortgage rates at the lowest closing costs.  We have & A+ Rated rating with the Better Business Bureau & have been nominated & won numerous awards like the BBB Torch awards and the BBB Honor Roll for NO complaints in the last 3 years! If you are need of a Home loan in Oklahoma, then go with the lender you can trust. Apply online or call for Free Rate quote or Pre-Approval.

ZFG Mortgage

6670 Lewis Ave # 200

Tulsa, OK 74136

Phone: 918-459-6530

Fax: 918-459-6535

Toll Free: 1-877-205-7266

http://www.zfgmortgage.com

5 Tips for Repairing Your Credit

Before you make any big financial life changes, it is a good idea to have your credit report in order. Your credit score can affect everything from the interest rate you get on a home loan or an auto loan to whether or not you are hired for a job. If find your current credit score lacking in points, now is the time to put the following five credit tips into action to improve your financial success. Plus consistently living by these tips will help you develop better credit responsibility and habits.

1. Know Your Credit Report

First things first do you even know what your credit report looks like? Do you know what your credit score is right now? A majority of Americans don’t. You can get a free copy of your credit report once a year from each of the three major credit reporting bureaus- Equifax, Experian, and TransUnion. (You will have to pay a small fee for the actual credit score.) Taking advantage of this free report yearly is a smart idea that will help you to monitor your credit and be aware of the contents. You have to know what your score is before you can decide how to fix it.

Your credit score will be a three-digit number between 300 and 800. Anything over 720 is considered excellent credit. Anything below 640 is considered poor credit. The better your score, the better rates you’ll get on loans and you’ll be more likely to be accepted for jobs and apartments.

2. Correct Any Errors

Once you have a copy of your credit report, examine it for errors. If there is a legitimate mistake, correcting it with the credit agencies can improve your score by roughly 30 points or more. Look for things like payments reported as being paid later than they were or any collections or judgments, if you find that there inaccurate then contact the creditor for a update or removal request. Be sure to get written confirmation from the creditor stating that it was & error. The reason you should always obtain a letter is in the event you apply for a loan or have your credit pulled at a later date and the discrepancy shows up again, you should have proof of the mistake.  After reviewing the credit if you find & inaccurate late payment or anything else that’s & error, you can also write or email the three major credit reporting bureau requesting a correction. The credit bureaus will then investigate the matter with the creditor and if it is inaccurate they will update the credit withing 30 to 60 days.

3. Reduce Your Debts

A big part of your credit score is determined by your debt-to-available credit limit ratio. A good rule of thumb is to keep your account balances at 30 percent or less of your available credit lines. You can do this by paying down your credit cards or store cards with the highest balance first, or if you have to switch some of the balance from one card to less used one. Do not, however, open more credit accounts to spread out the debt balances. That will imply to the bureaus that you are so irresponsible with credit you already have that you need more. This may lower your score.

4. Pay All Your Bills on Time

The biggest portion of your credit score is in fact your history of timely (or untimely) payments. Make sure that you pay ALL of your bills on time. If you need to create some sort of reminder system for yourself, do it! Automatic bill paying by internet is a helpful function as well. 

5. Give It Time

Finally, while this is not a very proactive step, it is important. It can often take six months or more to see real improvement in your credit score, so be patient. Try to limit the amount of time creditors pull your credit. A single credit inquiry can cost your credit score between 1-5 points according to the 3 major credit bureaus. Be sure to give yourself at least 6-12 months to repair your credit, before you apply or re-apply for that car loan or home mortgage.

If you are Interested in preparing yourself or your credit, be sure to read some of our other helpful blogs credit, real estate or mortgages today.

About the Author:

ZFG Mortgage headquarter in Tulsa, Oklahoma is the #1 rated mortgage lender in the state of Oklahoma. At ZFG Mortgage we pride our selves in offering the lowest mortgage rates at the lowest closing costs.  We have & A+ Rated rating with the Better Business Bureau & have been nominated & won numerous awards like the BBB Torch awards and the BBB Honor Roll for NO complaints in the last 3 years! If you are need of a Home loan in Oklahoma, then go with the lender you can trust. 

ZFG Mortgage

6670 Lewis Ave # 200

Tulsa, OK 74136

Phone: 918-459-6530

Fax: 918-459-6535

Toll Free: 1-877-205-7266

http://www.zfgmortgage.com