Posted By Kim Spanos @ Jul 7th 2015 1:11pm In: Buying a Home in Southern NH

Is owning your home or condo better than carrying a mortgage?

It has been a long debate with regard to home ownership. Is it better to own outright that New Hampshire home or condo? As the country moves further away from the Crash of ’09, the real estate mantra appears to be swinging toward the owning of a home and condo outright or free and clear.

  • Paying cash for that new condo or home is the surest way to establish a stress free peace of mind. There will be no worries about having to come up with a mortgage payment every month. In effect, the money that would be earmarked for such a purpose can now be thrown at your monthly profit margin. In addition, it will be easier to keep up with the cost of living if all you have to worry about are your property tax payments.

  • The immediate 100% equity you will attain by outright ownership of a home or condo can be successfully used as collateral should you need a loan. That is a benefit to being free and clear that you can’t underestimate. You may want to work some home improvements or you may have a sudden emergency. Knowing that collateral is there can be helpful with regard to your future planning and risk mitigation.

  • Home values come into play when deciding if you will go the outright ownership route. An experienced professional realtor will be able to sit with you and help you put together a strategy. What is your potential investment? Do you want to consider a pre-foreclosure? Do you just want to put down 50% and carry the other half in a mortgage? An experienced realtor can help you weigh your options.

  • While nearly half of the over 65 age group own their homes or condos outright, evidence is strongly suggesting that younger generations are more willing to become aggressive with regard to carrying a mortgage and paying it off sooner that the term. Many are taking a shorter mortgage option in the fifteen year range rather than stretching it out to the usual thirty years or so. They end up paying less for that house or condo and can be free and clear by their early 40’s.

It seems as if owning real estate immediately or in a shorter term is an ongoing trend that does not look to change anytime soon. So, see what your assets are and get with an experienced realtor to put together a solid strategy for owning that home of your dreams sooner rather than later.

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