Why Homeownership Is Better than Renting

For more than two decades, Service 1st Mortgage has brokered first-time and refinanced mortgages for homeowners in more than a dozen states. At Service 1st Mortgage, loan officers review each client's circumstances to provide the best loan terms and home buying advice.

One question many first-time homebuyers struggle with is deciding when to stop renting and purchase a home. The answer largely depends on individual factors and the local real estate market.

Homeownership is best for people who feel stable in their careers and do not anticipate moving for at least three years. Further, since homes come with additional maintenance and renovation costs, potential buyers should have room in their budget to accommodate these expenses after making the mortgage payment.

In the long term, buying a house is almost always a better investment. In many real estate markets, average rents increase up to 5 percent every year. However, fixed-rate mortgages remain flat for decades. Over time, homeowners pay less for their housing than renters.

Buying a home also enables individuals to build wealth through equity. Renters cannot recoup their rent, while homeowners can tap into the value of their homes after they sell. And if the house increases in value, in some cases the gains are tax-free.

Benefits of a Higher Down Payment

Since 1999, loan underwriting and granting firm Service 1st Mortgage has served homebuyers across the country. Service 1st Mortgage’s team of experienced mortgage brokers handles all major home loan transactions, including calculating mortgage loans based on the homebuyer’s downpayment.

Some mortgage programs allow buyers to purchase a home with as little as 3 percent down. While this can enable people to move into a home who otherwise wouldn't be able to do so, there are some benefits to saving up the once standard 20 percent down payment.

Homebuyers who put down 20 percent or more of the asking price are exempt from the private mortgage insurance (PMI) requirement. This is a monthly insurance premium that lenders require homeowners with little equity in their homes to pay. PMI can add hundreds of dollars to housing costs.

Similarly, mortgage payments for homeowners who make a small down payment are higher. This is due to both a higher interest rate on their loan and a larger loan balance to pay off. Additionally, closing costs like origination fees are based on the loan balance subtracted by the down payment. In this way, a higher down payment can reduce the cost of transaction fees.

The Duties and Education of a Process

Service 1st Mortgage is a mortgage broker licensed in 14 states. The company charges wholesale rates for its loan processing services. Cristi Bailey, a processing manager with Service 1st Mortgage, was recognized as one of Carrington’s top processors for the first quarter of 2020.

Process managers are also referred to as business managers, and their job is to evaluate and enhance business processes based on their evaluations. They also create documentation that details improvements made to a business process. In addition to improving business processes and documenting them, process managers also work with team members and other managers to ensure everything is going smoothly. Process managers are important because they help to reduce spending and increase operational efficiency.

Process managers should have at the least a bachelor’s degree. It is expedient that they major in finance, administration, business management, or accounting. College coursework in economics, statistics, computer science, and management theory could also help the prospective process manager land employment faster. Process managers use project management, spreadsheet, and business management software tools in carrying out their duties.