You probably have a good reason to buy the home you have been looking at. You may have a particular community in mind and wish to have the feeling only permanent residence can give you, with the community involvement and activities this can provide. Perhaps you just need a larger living area to accommodate your large and growing family. Some simply want more freedom that renting simply doesn't provide.

Whatever the reason, be it tax savings from mortgage interest deductions, or the forced savings plan a home affords in it's value build up, that is over time you will accumulate what mortgage lenders will call equity. And while renters face yearly increases, a homeowner will have a consistent payment year after year, that while at first can be difficult, will seem more and more easy as time goes on because of the effect of inflation.

There are a few considerations though. As a homeowner, you will lose a certain amount of mobility. As a renter, you can pick up and move to new locations relatively easily while home owners must first sell their existing home before moving. And even though your mortgage payments can often be less than a renter's taxes and repairs can often drive the prices to a level that is much closer to, if not greater than a renters. With the possibility of foreclosure always at the door, if you fail to keep up your payments, the lender may sell the mortgaged property. Home foreclosure can result in the loss of not only your house but also your investment and good credit rating. It is important to keep this in mind before buying your dream home.