Benefits of Home-Ownership
Owning a home is the American dream. The reasons for getting a home vary from person to person, but most people dream of having a place to call their own. They want a place they can live for a long time and gain some equity. There are a lot of reason to own a home and here are some of the best reasons to own a home.
When you talk to an agent or lending officer, they will inform you about the stability of a mortgage. While rent payments are volatile and change often, a fixed rate mortgage payment will be consistent over the life of the loan. If you have a locked in an investment that means you are usually able to afford it more every year, assuming your salary goes up. Also, you are spending money every month that goes toward ownership in your home.
Owning a home will help you build equity. Equity will strengthen your ability to buy, it will improve your credit and will give you the ability to borrow money from your property. How can you build more equity in your home faster? There are several ways.
Many mortgages will allow you to pay extra each month toward the principal on loan. Having a lower principle will lower the loan amount and will let you pay off your mortgage much faster as the interest will start becoming lower off the original amount.
Most people when they first buy a home will get a 30-year mortgage. Because the life of the loan is over thirty years, it will have a lower payment. If you want to save money and build equity faster, try a 15-year mortgage. While the payments will be higher every month, you will keep in interest and fees because you will pay the loan off faster. Then you will have equity to get another home, get an investment home, or other options. If you can afford the monthly payments, always do a 15-year loan.
Home improvement projects or upgrades can increase your equity in the home. Depending on what improvements you make, you can get more value in the house than you put into it, especially over the long term. For instance, you can pay $10,000 to upgrade your kitchen, and it might increase the value of the home $15,000.
When it comes to taxes, every little thing counts. It will depend on the state you live in, but there are multiple ways of increasing your tax return or decreasing the amount you have to pay. Some of the benefits may include deducting your interest, home improvement expenses, insurance payments and several others.
Building a community can help you, and your kids create lasting friendships and give them a more stable upbringing. Having this community give families a support system that helps them prosper. According to the National Association of Realtors, “Homeownership does create social capital and provide residents with a platform to connect and interact with neighbors. Owning a home means owning a part of a neighborhood…”
It is no wonder that owning a home is the American dream. With all the benefits of owning a home, it is something you should consider.