Purchasing your own home is undoubtedly a big commitment, and an even bigger financial investment. Experts agree that purchasing a home is a wise and sound investment. If you’re still on the fence about whether or not to pull the trigger, here are five benefits of owning your home.
A Wise Investment
Financial experts agree that purchasing your home is a smart long-term investment. Whether it’s a house or condominium, it will likely appreciate over the time you own it. In fact, the average rate of return on owning a home is expected to be between 8.6% and 10.0% each year.
As you pay your mortgage, each month a portion of it goes toward building home equity. Equity is the value of the home that you actually own. The value of your home will also likely appreciate over time, and this is another way you can build equity. Another bonus of developing home equity is that you can borrow money against it. A Home Equity Loan or Home Equity Line of Credit can be used in the event you want to make home improvements or need the cash for something else.
Claim Tax Deductions
The great news for homeowners is that both the property tax and the interest on your monthly mortgage payment are tax deductible – provided what you owe on your mortgage is less than the full price of the residence. As interest is a very big percentage of your mortgage payment, this tax shelter will remain in place for a large portion of the loan.
Consistent Monthly Expenses
Having predictable monthly expenses is helpful as it enables you to plan and budget over a longer timeframe. While renting leaves you at the mercy and impulsiveness of a landlord, most mortgages are set at a fixed rate, which means you can rely on predictable home expenses for the foreseeable future.
It Belongs To You!
Saving the best benefit for last—owning your own home means it’s all yours and you can do with it whatever you’d like. You can paint the walls in your favorite colors, amp up the music, and dance on the floors. Owning your own place definitely comes with a sense of pride, and over time, you can transform it into the dwelling of your dreams.
Call a Member Specialist today at 800-422-5852 to find out how we can help you finance the home of your dreams or use the equity in your home to make your dreams come true. Equal Housing Opportunity.