Benefits of Being a Homeowner
Hey, are you thinking about buying your first home but feeling overwhelmed with all the financial decisions, especially with interest rates on the rise? No need to worry because there are still plenty of reasons why becoming a homeowner is a smart choice. There are plenty of benefits to purchasing a home and we will dive into some of them.
One of the best things about owning a home is building equity. Each mortgage payment you make helps you gradually build equity that you can use for future expenses or even buy another property. Plus, owning a home comes with tax benefits that can save you money, like deducting your mortgage interest, property taxes, and mortgage insurance premiums from your income taxes. With talking about mortgage payments, there are also a few mortgage options to choose from that best suit your needs. Thorsby’s article, First-time Homebuyer? gives insight to finding you options by determining how much cash you have for a down payment. A 20% down payment would classify as a conventional mortgage. There is Federal Housing Administration (FHA) loan that requires less money down and does not rely on an impressive credit score. The U.S. Department of Veterans Affairs allow veterans to use a VA loan which require no money down but may have additional fees.
If you’re looking for stability and security, owning a home can provide that too. With a fixed-rate mortgage, your monthly payment stays the same, so you’ll always know what to expect in terms of housing costs. And you can personalize your home to make it truly yours by painting the walls, installing new flooring, and making other improvements.
When you own a home, you’re also making a long-term investment. In areas with steady population and job growth, real estate can be a valuable asset that appreciates over time, providing a significant return on your initial investment.
Despite the higher interest rates, they’re still relatively low compared to historical averages. Locking in a fixed-rate mortgage now can provide stability and certainty in your housing costs for years to come.
So, if you’re thinking about becoming a first-time homeowner, take a moment to consider the benefits like building equity, tax benefits, stability, personalization, and investment opportunities. And make sure to work with a trusted real estate agent and lender to guide you through the process and help you make the best decision for your financial future.
Do you need a supportive team and easy start to purchasing your first or next home? Click here to complete a survey at Minnesota Home Buyers Connection and get connected. They can help every step of the way!
Minnesota Homebuyer’s connection (2022) Minnesota Homebuyer’s Connection. Available at: https://mnhomebuyersconnection.com/ (Accessed: March 24, 2023).
Thorsby, D. (2019) First-time homebuyer? here’s how to buy your first home. https://realestate.usnews.com/real-estate/articles/the-guide-for-first-time-homebuyers (Accessed: March 28, 2023).