Owning a home is the fulfillment of the American dream for many people. Buying a home is one of the biggest financial decisions you will make in your life. In the wake of the 2008 housing crisis it has been asked if the benefits of homeownership have been terminally affected, perhaps even wiped out. The answer is resounding “No!” The benefits of homeownership haven’t gone anywhere. Among the high-profile tangible financial benefits, in no particular order, are:
- You build equity each and every month. The longer you own your home, the greater your share in its worth. A morttgage is like a forced savings plan.
- Property appreciation. Historically, a home carefully shopped and maintained increases in value at about 5% per year, compounded. Compare that to the 1% percent of less in most bank savings accounts, nationwide.
- Every material improvement that makes the house and grounds more attractive and more livable is tax-deductible.
- All mortgage interest is tax deductible.
- Closing cost points (also called loan origination fees) are tax deductible. Points are calculated at a percentage of the total loan amount. One point equals one percent of the loan.
- Interest in home equity loans is deductible.
- Leverage opportunity. Use your home to secure a second mortgage to meet education purposes, for example.
- Property tax is deductible.
Getting prequalified is the initial step in the mortgage process, and it’s generally fairly simple. We will help you take the first step toward your home financing goal with a pre-qualification consultation. Call us today or simply prequalify online. Our free Mortgage Pre-Qualification Form is also available to download.
Suggested article to read: Pre-Approval vs. Pre-Qualification