03 May . 2018
Benefits of Home Ownership
There’s no place like home, and the benefits of home ownership can go well beyond a place to live. From achieving your financial goals to contributing to the local economy and establishing deeper roots in the community, home ownership can have far-reaching impacts.
Considering buying a home? Get informed about the many positive aspects of home ownership.
Owning a Home Builds Equity
The financial benefits of owning a home are well-known. Home ownership allows you to build equity, as opposed to renting. When you subtract the amount you owe on your home loan from the total value of your house, the amount left over is your home equity: the “dollar” value of your home that actually belongs to you. There are two ways to build equity. With each monthly mortgage payment you make, a portion goes toward reducing the amount you owe on your loan, which increases your equity. Secondly, as your home increases in the value, it creates more equity for you.
Home Ownership Is More Attainable Than Expected
If you’re a first-time homebuyer, you may be unaware of programs that can help with your down payment. Ask your realtor or mortgage broker about these programs.
You Enjoy Significant Tax Deductions
Owning a home can reduce the amount you pay in income taxes each year. Your mortgage interest and property tax payments may be deductible from your federal taxes, as well as many state taxes. Certain closing costs and loan discount points also may be tax deductible. In the early years of your mortgage, when interest represents the bulk of your monthly mortgage payment, these tax deductions can put a significant amount of money back in your pocket.
Your Costs Are More Stable Over Time
Your costs are predictable and more stable than renting because they’re ideally based on a fixed-rate mortgage. No need to worry about rising interest rates once you buy, or increasing rent prices.
You Build a Strong Credit History
When you buy a home and consistently make your monthly loan payments on time, it demonstrates to other lenders that you are a good borrower and the risk of you defaulting on a loan is low. This strong credit history will be helpful in the future when you need other loans for buying a car, making improvements to your home, or paying other major expenses.
You’re Free to Create the Home You Want
Homeownership offers tremendous freedom to create the living environment that you have always wanted. You can own pets, paint rooms whatever color you like, make changes to floors and carpeting and do all the things that make a house your home – all without having to get approval from a landlord.
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