Long-term benefits of home ownership 

Mortgage
Family standing in front of their new home with keys

Owning a home has many long-term financial advantages. 

Home ownership has long been considered a foundation for financial stability. If you’re ready for the responsibility and are prepared to stay in your home for at least five years, you’ll find that the benefits of owning a home can really add up.

Monthly payment stability

Rent is determined by your landlord, inflation and how many people want to rent in your area. It will always increase. How much rent goes up, and when, is entirely out of your control. However, when you own a home, your loan payment is locked in for the duration of your mortgage. It’s a stable, fixed amount that makes it easier to create a predictable budget and plan for other long-term financial investments. When you own a home, any worries about the increasing price of rent are taken off the table.  

Building equity  

Every monthly payment goes toward owning a larger percentage of your home. That equity is yours and not your landlord’s. Equity also has other uses. If your home needs an emergency repair, or you want to make an upgrade, a home equity line of credit (HELOC) lets you access and put your equity to use.

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Home value appreciation  

Historically, homes have appreciated in value an average of 3-5% per year*. Even if you don’t completely own your home, the equity you do have is still increasing in value. The rate of appreciation could also be considerably higher if home inventory remains low.  

Tax benefits  

Did you know that you may be able to deduct your mortgage interest and property taxes on your yearly tax returns? There are rules for how much you can deduct per year, but your refund could be substantial. What you do with that return has a lot of possibilities. You can place it into savings, a CD, or even make an extra mortgage payment to pay off your home sooner.  

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Generational wealth 

The value of a large asset like a home can be truly beneficial for the next generation. A home’s appreciation over time will increase the owner’s net worth, which can be given to children or loved ones in the future. A house can also be turned into a rental property to create a secondary income. If your family has business-minded members, home equity can be used to start a business, which can be another foundation for long-term wealth building. 

Design a very personal space 

The trees you plant tomorrow can shade the play of your grandkids. A backyard can become a summertime oasis. You can paint the walls colors a landlord would frown upon. There’s nothing holding you back. In a home, you make your own rules. 

 

Let us help you on your path to home ownership.

How much can you afford? What are your down payment options? Do you need help estimating your total costs? We’re here to help. Our mortgage loan officers have years of experience and will provide guidance from the first conversation and every step that follows.  

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*Home appreciation is not guaranteed. Home depreciation has occurred in the past because of recessions or high interest rates. Neglected maintenance can also negatively affect the value of a home.  

Articles contained in our news section are not intended to provide recommendations or specific advice. Consult with a professional when making financial decisions. Once published, articles are not updated; information may be outdated.