In a nutshell, Term Ownership merges the best aspects of traditional home financing with the best aspects of renting, including:
- Lower, Fixed, Monthly Payments,
- Low/No Upfront Cash Requirement,
- Mortgage Interest Tax Deductions,
- Property Tax Deductions,
- Potential Equity, and
- A Right to Walk Away at the Term’s Conclusion.
With Term Ownership, families on the verge of foreclosure can have years of stability instead of losing their home.
By entering into Term Ownership, and taking a step back from full home ownership, the homeowner is taking some responsibility for their predicament. Accordingly, this avoids the Moral Hazard of a bailout.