What Is Rent To Own?

If you have ever asked what is rent to own? It is basically what it sounds like – a way of paying rent, although the rent you have already paid goes towards the mortgage if and when you decide to buy the property. The obvious advantage of a rent to own arrangement is that it means the money you are paying in rent isn’t simply ‘wasted’ as it will eventually go towards a mortgage loan. Having good credit isn’t usually a requirement for anyone interested in doing this, and of course it also allows you to live in a house for several years without the overwhelming commitment of a mortgage. It’s a great opportunity to make sure you like not only the house, but the neighborhood too. And you may be able to lock in a purchase price, protecting you from any potential price increases.