7 Reasons to Own a Home

7 Reasons to Own a Home

For most, it is the American Dream to own a home.  It has always been an important milestone of adulthood.  But as a first-time home buyer, how do you know it is the right thing to do?  Besides the obvious benefits of owning a home, here are additional advantages of owning rather than renting.

Tax Benefits

The bulk of your house payment each month goes toward interest.  Mortgage interest is tax deductible unless your mortgage loan is greater than $1 million.   You can also deduct the property tax your lender pays on your behalf.

Appreciation

Over time, houses generally go up in value.  A $200,000 house after 30 years becomes a $545,313 house.  According to the Price-Shiller Index, existing homes increased 3.4% annually on average from 1987 to 2009.  Over a 30-year period, this increase is a big deal.

Equity

Equity is the difference between the home’s value and how much is owed to the mortgage lender.  The reduction of your mortgage every month increases your equity and builds interest in your home.

Savings

Having a mortgage is having a forced savings plan.  When you pay your mortgage every month, you are ultimately being forced to save because you are building more valuable equity in your home.  Making an extra payment on your mortgage each quarter could potentially save you money on interest resulting in your loan retiring earlier.

Predictability

As a borrower, you are able to accurately predict your future payments with a fixed-rate mortgage.  Your interest rate doesn’t fluctuate during the loan period, keeping your payments relatively the same.  Rent payments are unpredictable and may rise every year.

Freedom

Owning a home gives you the freedom to do what you want with it, especially aesthetically.  Decorate it how you please, paint whatever color you’d like and upgrade amenities that suit your sense of style.

Stability

You are officially planting your roots in an area you choose that benefits you and your family the most.  From here, you will build long-lasting relationships with your neighbors and will offer the benefit of life-long friendships and education continuity to your children.

 

Want to learn more about the home buying process? Contact a First Home Loan Officer today!

Related Posts

Pre-Qualification vs. Pre-Approval Featured
Pre-Qualification vs. Pre-Approval

You’ve heard the terms pre-qualification and pre-approval, but what do they mean? They are the same thing, right? Not quite! The terms have been used interchangeably, but their true definitions differ. We’re going to break it down and explain the difference between the two. Pre-qualification The very first step to take if you are ready […]

June 09, 2021
Full Post
Steps on the journey to purchasing your dream home! Featured
Steps on the journey to purchasing your dream home!

Get Pre-Qualified Complete a loan pre-qualification – Contact one of our loan officers to get started! Submit basic documentation – This can include paystubs, bank statements, credit reports, and statements for any other debts or loans you might have. Your loan officer will let you know exactly what they need! Discuss what you can afford […]

June 04, 2021
Full Post
How to Make a Competitive Offer on a Home
How to Make a Competitive Offer on a Home

In order to land the home of your dreams, it’s important you understand how to make a viable offer. This is especially important in a competitive market like the seller’s market we are currently in. Here are some tips for making a competitive offer on a home. Get Pre-Qualified Getting pre-qualified is one of the […]

May 26, 2021
Full Post

Connect With Us