What are the benefits of renting to own home vs. just flat out owning home?

Answer 1

equity. you put money in you eventually get money back out renting just puting money in. No money ever comes back from a landlord..

Answer 2

Usually Renting to Own means that part of your Monthly Rent Accumulates and becomes a "downpayment". Ie if you pay $1000/ month rent $200 dollars of it goes towards the downpayment. After you have been in the house for a few years the "owner/landlord" will convert the house into a traditional mortgage using the accumulated dollars as the downpayments.

Note that some owners may choose to hold the mortgage themselves or get a bank involved.

This can be a great option if you have trouble saving the cash for a downpayment. You might even save a few dollars...because if you had a traditional mortgage very little of the monthly payment goes towards principal in the early years.

But read the fine print carefully because some rent-own options have extra fees and penalties...

Answer 3

Most rent to own situations include added rates and fees.. Therefore, on top of paying interest and fees to just the bank or mortgage holder, you are more than likely paying additional fees to the company or individual holding the mortgage. Cut the middle man out and reduce you costs.

Answer 4

Renting to own, means that your rent payments are probably going to some sort of "pay off" amount. In other words, normally when you rent something, you are just paying to "borrow" it. In a rent to own situation, you eventually own something.

Usually, though, a rent to own situation will hit you with either higher payments, or a longer period of time then simply buying it yourself.