It may cost more than renting, but the benefits can’t be denied.
We’ve all heard it before: buying a home is part of the American dream. And, while it is initially more expensive to own a home than rent, there are multiple benefits of buying a home that you can’t get from renting. Read on to learn 4 ways that homeownership can help you create a secure financial future and build wealth over time.
1. Buying a Home is a Good Investment
Rental costs are creeping up. And, while home prices are also increasing, when you stay long enough, the value of your property will traditionally go up as well. When you are ready to move, you’re likely to get a substantial return on your investment. Because interest rates are currently low, now is a good time to consider taking the plunge. Click here for information about projected rising interest rates.
2. Owning a Home Stabilizes Your Budget
When you’re a renter, there are many things out of your control. Landlords can (and do) raise rents. In most cases, you can’t guarantee your rent will remain stable for the long term. Owning a home, however, means you know your mortgage payment – on a fixed rate term of up to 30 years – and can plan accordingly. And, bonus: after you pay off your mortgage the home is yours!
3. The Tax Benefits Are Real
Have you heard of mortgage interest? In the early years of your mortgage, interest is often a large part of your mortgage payment each month. Deducting the amount of your mortgage interest payments from your taxes is the chief tax benefit of owning a home. And, if you itemize your deductions, you can also deduct property tax payments and other expenses from your federal income tax. (Click here to learn more about the tax benefits of homeownership.)
4. Your Nest Egg Continues to Grow
Every time you make a mortgage payment, you’re one step closer to paying off your loan while building equity at the same time. What’s more, as your home increases in value, so does the amount of equity you have at your disposal. When necessary, you may be able to borrow against that value – to make home improvements or for unexpected medical or education expenses. This type of home equity line generally offers lower interest rates than a credit card and can be used to pay off high-interest credit card debts.
For some, the thought of buying a home or going through the mortgage process can seem overwhelming. That’s why it’s important to develop a relationship with a trusted advisor who can provide sound advice tailored to your financial situation. For more information about the services and mortgage options available through FirstBank Mortgage, click here.
For questions or concerns, please call (855) 753-6209 to speak with a loan officer in your area.