Why Should I Consider Buying My Own Home?

The more information you have about this scary milestone, the more relaxed and better equipped you will be to handle the process.  Here are some good reasons why you should buy a home.

Pride in Ownership

Pride in ownership is the number one reason why people yearn to own their home. It means you can paint the walls any color you desire, turn up the volume on your CD player, attach permanent fixtures and decorate your home according to your own taste. Home ownership gives you and your family a sense of stability and security. It's making an investment in your future.

Appreciation

Although real estate moves in cycles, sometimes up, sometimes down, over the years, real estate has consistently appreciated over time.  If nothing else, home prices in the short term (over the past 6 years) have declined, you’re considering a purchase while prices are low, the only direction we have to go from here is UP!

Mortgage Interest Deductions

Home ownership is an awesome tax shelter and US tax rates favor homeowners. Mortgage interest is fully deductible on your tax return. Interest is the largest component of your mortgage payment for the first half of your loan term.

Property Tax Deductions

Real estate property taxes paid for a first home and a vacation home are fully deductible for income tax purposes.

Paying Your Mortgage Payment = Equity

Each month, part of your monthly payment is applied to the principal balance of your loan, which reduces your obligation. The way amortization works, the principal portion of your principal and interest payment increases slightly every month. It is lowest on your first payment and highest on your last payment.  Paying rent, you’ll never get ANY part of that rent check back.

Equity Loans

Consumers who carry credit card balances cannot deduct the interest paid, which can cost as much as 18% to 22%. Equity loan interest is often much less and it is deductible. For many home owners, it makes sense to pay off this kind of debt with a home equity loan. Consumers can borrow against a home's equity for a variety of reasons such as home improvement, college, medical or starting a new business. Some state laws restrict home equity loans.