Homeownership is a complex topic, and it can be challenging to know where to start. Deciding to move from renting to owning reaps many benefits, we would like to make you aware of these benefits.
We’re covering the basics for you.
- Owning a home with a mortgage enables you to have a consistent monthly payment without the possibility of rising rent.
- Each monthly payment you make towards your mortgage earns you equity. As you make mortgage payments, your loan balance will decrease, and your equity will increase.
For example: if you rent, you increase your landlord’s equity instead of building it in your home. Earned equity can be converted to cash for home improvements, consolidating high-interest rate credit card debt, covering the cost of education, or purchasing a second property.
- Home values typically rise over time – appreciation puts money into your pocket and helps to build wealth. Increased property value creates a profit for the owner upon selling the home or earning more income through monthly tenant payments.
- Potential for a tax reduction! Homeowners may deduct state and local property taxes in the year they are paid and can file a deduction for eligible items. The itemized deductions can reduce the taxable income owed by deducting interest paid on a home mortgage.
Eligible deductions available to homeowners include Mortgage Points Deduction, Mortgage Insurance Deduction, Mortgage Interest Deduction, Home Office Deduction, and a Real Estate Tax Deduction.
- You are building generational wealth. Owning a home provides a stable investment while doubling as a place to live. Each payment you make on the house acts as an “automatic savings account” and increases the equity in your investment. An owned home is an asset you can pass down for generations in your family.
If you would like to learn more about purchasing a home, please contact one of our qualified loan officers licensed in your area today!