Buying a home can have many benefits for you and your family, including more freedom to do what you want with your home, more space for your family to grow, more room for your pets and the satisfaction that comes with home ownership. But aside from all the perks that come with owning a house, did you know there are also ample financial benefits? It’s true, and we can help you explore them all. Check out this handy infographic to learn more!
Build Equity for Your Future
A home isn’t just a home—it’s an investment in your future. Becoming a homeowner is a lot like opening the biggest savings account of your life and paying into it over time. As you pay your mortgage, you are building equity in your home year after year. Home equity is simply the difference between your home’s market value and the amount you still owe on your home. Even better, you don’t even have to have your home completely paid off to have equity. For example, if your home is worth $100,000 and you have already paid off $50,000, you have $50,000 of equity in your home! What’s more, if your home increases in value over time and you properly maintain your home, you will build even more equity for your future that you can use to:
- Purchase your next home
- Borrow against the equity with a home equity loan or second mortgage
- Fund your retirement by selling your home and downsizing
Keep Your Monthly Expenses the Same
When you rent your home, you are at the mercy of the rental market. Over time, your rent can increase, and you may not have much control over the cost of your utilities. However, when you buy a home with a fixed-rate mortgage like the NC Home Advantage Mortgage™, you can count on your monthly mortgage payments remaining close to the same for the life of your loan. In addition, when you own a home, you have more control over your utility costs. Where you may have had to share utilities or pay more because of inefficient systems in your rental home, when you own your home, you can make decisions that can impact your bottom line. You can choose when to turn on your heat and your air conditioning, you can reduce your water bill by updating your home with water-saving features and even keep your electric bill down with a programmable thermostat and a tankless water heater.
Owning is Usually Less Expensive than Renting in the Long Run
Although buying a home might seem like a more expensive choice up front, due to closing costs, down payments and more, in most cases and in most markets buying a home is almost always less expensive over time. Mortgage rates currently remain low, and in many areas, the cost to own is far less than the cost to rent—and you can usually get more bang for your buck by buying a home in terms of space and amenities. Check out this handy calculator to see if renting or buying is more economical where you live.
Qualified First-Time Buyers Can Save On Their Taxes
Although recent developments in our tax system have changed the potential tax benefits of home ownership by making the standard deduction more attractive than itemization for many homeowners, eligible first-time buyers may still be able to save up to $2,000 per year on their federal taxes with the NC Home Advantage Tax Credit, which is available through the Mortgage Credit Certificate (MCC) administered by the NC Housing Finance Agency. Available for eligible first-time buyers (buyers who haven’t owned a home in 3 years) and military veterans, the NC Home Advantage Tax Credit can help homeowners claim a federal tax credit for 30% of the interest paid on an existing home or 50% on a newly built home, up to $2,000 per year for the life of the loan. Buyers must apply and be approved for the MCC by the Agency prior their home purchase in order to claim the NC Home Advantage Tax Credit. Learn more about this money saving tool.
If you still think that home ownership is out of your reach, the NC Housing Finance Agency, a self-supporting public agency, has resources that can help. From home buyer education, to affordable mortgage products, a statewide network of lenders and real estate agents and more, the NC Housing Finance Agency can help make your dreams of buying a home come true so you can reap the financial benefits of home ownership.
