Finance professionals cite reasons like increasing equity, building your net worth and increasing appreciation as huge advantages of home ownership. These are great points to consider but here are three not-so-obvious upsides to owning your own home.
Every mortgage payment is a step closer to eliminating your monthly housing expense
Paying down your mortgage allows you to build equity in your home which can come back to you should you decide to sell in the future. However, if you pay off your mortgage completely, you have 100% equity in your home and no recurring housing payment which frees up money for anything you can dream up.
Homeownership has tax benefits
If you’ve always been a renter, you might not think about the tax advantages of home ownership. The interest and property taxes included in your mortgage are a tax deduction as long as your mortgage is less than the value of your home. It’s a great financial advantage to have some tax relief tied to your interest payments each year. Check with a tax professional to get the best benefit possible on your return.
Your monthly housing payment is predictable
Homeowners are most likely to get a fixed-rate mortgage which means that your payment could change very little over a long period of time. Renting doesn’t produce that kind of predictability. Rental prices have grown significantly since 2012 and can’t compete with today’s low mortgage rates. By purchasing a home instead of renting, you’ll have the ability to build a more flexible financial plan for now and the future.
If you’re ready to begin the path to home ownership, call us today at 865.577.SOLD. We’d love the opportunity to discuss your needs and help you through the home buying process!