Financial Benefits of Home Ownership

February 5, 2018 3:16 pm

Purchasing a home is likely one of the largest financial decisions you will make in your lifetime. When considering such a large investment, the best idea is to sit down with a Mortgage Planner who can discuss with you what your financial goals for the future are and determine what your budget for a mortgage payment should be. At Fairway Independent Mortgage Corporation, we want to make sure that you are comfortable with your mortgage payment, which is one of the reasons why we want to take the time to answer any questions you may have.

There are many financial benefits to owning your own home:

Equity – The equity in your home is the amount you can sell it for minus the amount you still owe. When you make a mortgage payment each month, you reduce a portion of the amount you owe on your home. This, in turn, increases your equity.

Mortgage tax deduction benefits – Tax codes allow homeowners to deduct the mortgage interest from their tax obligations. Because interest payments can be the largest portion of a mortgage payment, this is a huge deduction for many people. Additionally, property taxes are fully deductible for income tax purposes.

Buying is cheaper than renting – Renting may be cheaper at first; however, the interest portion of your mortgage payment will decrease over time. This means that the interest you will be paying will eventually be lower than the rent you would have been paying. Also, by continuing to rent, you are putting money in your landlord’s pocket without creating any equity for yourself.

When you are ready to buy a home, I would love to review your financial goals to see if we can make owning a home a reality for you. We will review your credit report, discuss any repairs that may need to be made, and talk with you about your homeownership objectives. Call me today to set up an appointment!