You’ve likely heard a lot of things about the housing market in recent years, but is buying a home and becoming a homeowner all that it is cracked up to be? Aside from all of the personal advantages of home ownership like the freedom to do what you want and more space for your family, did you know that there are substantial financial upsides as well? Discover the top financial advantages of home ownership so you can see how buying a home might make fiscal sense for you.
Home Ownership Helps You Build Your Nest Egg
When you rent your home, you are paying your rent right into your landlord’s pocket. However, when you own your home, you are building equity with every mortgage payment. That means that when you pay back your mortgage, you can think of your home as a giant savings account that builds value over time. What’s better, homes typically increase in value, helping to ensure that your nest egg is safe and growing.
Owning Can Help Save on Your Taxes
Homeowners are eligible for tax incentives that most renters are not. Did you know that when you own a home, the interest that you pay on your mortgage as well as the property tax portion of your mortgage payment can be used as tax deductions? You can even write off some of your closing costs! Deducting these expenses from your taxes each year will decrease your tax liability, which means there might possibly be more money in your pocket come tax time.
Home Expenses Are Stable and Predictable
If you’re a renter who is worried about skyrocketing rent prices, home ownership might be a great way to escape. When you buy a home, especially with a fixed-rate mortgage like the NC Home Advantage Mortgage™, your mortgage, minus property taxes and insurance costs, can never go up. That means that the mortgage payment that you make today will be essentially the same payment that you will have 30 years from now. In addition to the mortgage, you will be able to better predict and control your utility costs as a homeowner.
Paying Off a Home Can Help You Have a Stable Retirement
Buying a home isn’t just a large purchase—it’s a long-term investment. In fact, many homeowners choose to stay in their first home, pay it off and enjoy living mortgage-free. This dream is even more helpful during retirement when you may live on a fixed income. Aside from medical expenses, living expenses take the biggest chunk out of a monthly budget for retirees. Although property taxes and utilities will never go away, having no monthly mortgage payment can help your retirement savings go further!
There are many financial advantages to becoming a homeowner, and a preferred lender can help you learn more about them all. Find a participating lender near you at www.nchfa.com/find-lender.
