Before making the important decision to buy a home, prospective homebuyers should analyze the financial aspects of home ownership. Many sound reasons to buy cannot be measured with a calculator. These include your own long-term security, as well as being able to leave an estate to your heirs.

If you plan to own your home for several years and the payments are within your budget, you will probably be better off owning than renting. Here are some points to consider:

	Rent	Buy
Tax Savings	You might receive a state income tax renter's credit, but nothing more.	Payments towards interest, taxes and points are tax deductible.
Equity Build-up	None, unless your rent payment is lower than the cost of owning a home, and you invest the difference in a CD, stock or mutual funds.	Even if your home value remains constant, your loan balance should decrease. This results in increasing equity your property.
Mobility	Most leases are less than 1 year in duration. It's easy to move at the end of a lease. Also, your landlord usually won't have to renew your lease, and you could be forced to move out at the end of your lease.	Selling a house can take time and may cost 6% to 8% of the sales price. If you have to sell quickly, it could cost even more. If you don't have to sell, yet must move, consider renting your house. You'll probably receive additional benefits by depreciating your home for income tax purposes. Remember, buying a home makes sense if you plan to hold it for several years.
Payments	Your rent payments generally increase every year. Rent increases are often tied to inflation.	Mortgage payments on a fixed-rate loan will not change. Adjustable-rate loan payments vary according to the terms of the note and economic conditions.
Timeframe	Renting makes sense if your time frame is less than 2 to 3 years.	The longer you plan to own your home, the more sense it makes to buy. Some buyers with plans to move relatively soon may buy if they expect the market to appreciate significantly.