5 Benefits to becoming a home owner
When reflecting on 2020 I think we can all agree that it was a wild year especially looking at the housing market which is now continuing into 2021. The 65.8% of Americans who own homes is only growing as low interest rates and the COVID-19 pandemic encourage more people to buy. If you have been thinking about buying, now may be the right time. Here are just a few reasons why you may want to join the American Dream of home ownership.
tax advantages
We all know paying taxes isn’t the most fun thing in the world but owning a home can actually make it more beneficial for you. A big advantage is having the option to deduct your monthly interest from your tax returns. Due to the first few years of your mortgage typically being all interest, you get a nice year end deduction. Adding on to the monthly interest deductions, you can also deduct things such as home-related purchases and mortgage insurance payments. You can always reach out to your accountant if you are not 100% sure on how owning a home will affect your individual taxes.
home improvements
One of the most frustrating things about renting can be not having the freedom to create your space how you would like to. When owning a home, there’s no permission needed. Whether you want to do a big project like a remodel or something as little as repainting a room, you are able to do as you please because it’s all yours! Creating and modifying your home to fit you and your family can be one of the best feelings in the world, and it can even add value to your home!
Gaining equity
You may be wondering what equity is. In simple terms, equity is the current market value of your home minus any outstanding loan balances. Each year you own your home, you have greater equity in it. And when you have paid your mortgage it’s as if you’re living “rent free” – you own your home free and clear.
stability
The stability of being a homeowner is at the top of the list for many considering home ownership. When renting you never know what changes are to come: a landlord could change your rent payments, sell the property or even decide not to renew your lease. When it’s your own home, you don’t have to worry about those concerns. Your mortgage payment is consistent and you don’t have to fret about people entering your home with only a 24 hour notice.
Improving credit
There are definitely many things that go into having a good credit score. Two of the most important factors are length of credit history and the type of credit you have. This is another way where being a homeowner can be a huge benefit. A mortgage is typically around 15 or 30 years which gives you a great way to lengthen your overall average of your accounts. Also adding a mortgage into your credit mix among things like credit cards, car loans, and typical bills while paying them on time will show that you are responsible making it easier to get approved for future accounts.
Overall, becoming a homeowner can be a rewarding experience. You can build memories and create positive financial futures for not only yourself but your family as well. If you have been unsure about making your home purchase these are just a few of the many benefits attached to being a homeowner. Our agents can show you just how easy this process can be and help you find your forever home.
Hi! I’ve been following your blog for some time now and finally got the courage to go ahead and give you a shout out from Porter Texas! Just wanted to tell you keep up the great job!
Thank you!
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