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| *Ostroff, Fair and Company>>>Renting & Real Estate |
What does it mean to be a homeowner? |
I've been looking forward to buying a home since I took an interior design class in high school. But recently I was struck with the thought: Do I own the home when I buy it, or when I pay off the mortgage? With so few people reaching the end of a mortgage is it an antiquated idea that to be a homeowner you must own your home clear and free? A home owner has made a purchase and a commitment but it has nothing to do with a free and clear title . Most savvy wealthy persons carry a mortgage on their homes so they can keep their money invested with a better return . They can borrow at 6 % with a tax deduction that converts to 4 % and collect 10 % on investments To have the title of homeowner you do not have to own the home free and clear. It is considered your home, you just owe funds to the bank. As long as you are making those payments, you can do anything to the home you want. Loan officer It's when you buy it...while you are still paying the mortgage. it is considered owning as soon as you go through the paperwork and move in. though the bank owns most of the house. Yes ! Because if you sell the house, you'll have to pay back the mortgage first. And if you do not pay your mortgage for a couple of months, they'll sell your house. So you do not really own the house. You begin to gain equity when you buy a home. The bank owns part of my house. In 5 years I have gained equity from what I have paid on principle plus the fact that the home's value has doubled in tha time. If I sold it now, I would have gained quite of bit of money. |
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