Homeownership May Help You Build Wealth

There’s a line from a classic movie that goes, “There’s no place like home, there’s no place like
home… “and when you think about it, there really isn’t! A home is more than its walls and outdoor space, and while renting or leasing may be a practical, short-term option, homeownership has long-term benefits – including helping you build wealth. Take a few minutes to read how homeownership can add to your bottom line. 

Investment in Your Future 
When you rent, you pay someone else’s mortgage, taxes and help maintain their bottom line. But when you own your own home, you invest in your future! The dollars you’d spend on rent now go towards your house payments and your future. Plus, since home values tend to go up, you build equity. Also keep in mind that your monthly mortgage payment will most likely be about the same as when you purchased your home. This is not always the case when you rent. As a homeowner, you know what your mortgage payment is, and you can budget accordingly.  

Increased Home Value
Your home will be assessed periodically and when that occurs, it’s reasonable the value of your home will increase as well. Yes, the increased value can bump up your property tax bill, but it can also add to your net worth. How? As the value of your home increases, the equity in your home builds which means your net worth builds. Then, if you decide to sell your home, the equity may help to offset the cost of your next home. If it’s your ‘forever home,’ the equity built over time adds to your net worth. It’s a
win-win! 

Tax Benefits
It’s true that homeownership means expenses like a mortgage payment, property taxes, home insurance, and home maintenance costs. But the good part is that you also have tax breaks. Please be sure to first check with your financial advisor about deductible homeownership expenses like property taxes, mortgage interest, mortgage points, home improvements, energy efficiency upgrades, medical home improvements or a home office.  

Down Payment Cost
Did you know that a 20% down payment is not always required? While putting 20% down on your dream home allows you to skip private mortgage insurance (PMI) payments, there are mortgage loan programs that require as little as 3.5% down or even offer down payment assistance! Find out what loan program options you may have when you talk with a loan originator near you.  

Homeownership is an investment, and being a homeowner has its benefits. After all, there’s no place like YOUR home!