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Buying a home is often called the American Dream. A milestone that requires you to make one of the biggest decisions of your life. But in the end, will it be worth it? The answer is YES. Buying a home is one of the most rewarding investments you could make. Find out why with these six big benefits of homeownership.
Why is Home Ownership a Good Investment?
A home is a purchase that appreciates over time. While each local market has its own unique factors, the national median home price goes up each year. This creates the buying and reinvestment power better known as equity.
What are the Tax Benefits of Owning a Home?
The federal government encourages homeownership by offering tax incentives for homeowners. The biggest one is the option to deduct interest from mortgage payments on your income tax return, especially at the start of a mortgage when most of the payment is applied to the interest. Payments on private mortgage insurance (PMI) and certain home-related purchases also qualify for tax benefits. Contact your tax advisor for more information.
Will Buying a Home Strengthen My 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 an improvement to your home, or paying for other major expenses.
How Does Owning a Home Build My Equity?
When it comes to homeownership, investment and equity are directly related. As you make mortgage payments each month, part of the payment goes toward the interest, while the rest pays down the principal balance. Equity can be better defined as the part of the principal balance you’ve already paid, or the percentage of your home you already paid, or the percentage of your home you already own. Paying the principal is like depositing money in the bank because that money becomes available for reinvestment in the home itself, a new home or a rainy-day fund.
What are the Social Benefits of Owning a Home?
Staying put for longer periods of time also creates social benefits that range from friendships with neighbors to community involvement and consistent educational opportunities for children.
How Does Owning a Home Affect the Economy?
Just as each home is important to the family that lives in it, housing is important to local, state and national economies.
With great knowledge comes great responsibility. While there are key benefits to homeownership, making the biggest decision of your life should not be taken lightly. The right mortgage has to have the right monthly payment for your particular financial situation. The mortgage payment calculator is a simple way to make sure that you've got a match. It estimates your potential monthly payment based on the parameters related to loan and property information. It also takes into consideration tax and insurance information. Input these numbers and you've got a quick estimate of whether or not the loan is in your budgetary ballpark.
Use this calculator to help determine what makes sense for you at this time.
Our mortgage professionals are here to help you feel more informed and empowered to make the best decision for you and your family. One step at a time, we will help you to build your budget, navigate the process, and apply for a loan. Contact us today to start your journey toward homeownership.
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