Homeowners no longer have to worry about a landlord hiking the rent next year or the year after. With a fixed-rate mortgage, your principal and interest payment won’t change during the term of your loan. For many buyers, that’s 30 years of stability.
You own a little more of your home with every mortgage payment you make. That ownership stake is known as equity. Over time, you can look to leverage that equity, either by borrowing against it or by hopefully realizing a solid return when it comes time to sell. Homeownership can be a great financial investment depending on your specific goals and situation.
Is your daughter in desperate need of bubblegum-pink walls? Want to start a backyard garden? Homeowners have the freedom to alter a space without a landlord’s approval. That personal touch can help make a house a home.
Owning a home can also unlock future credit opportunities. Banks and credit card issuers can favor those who own a home, which is why it’s common to see “Do you rent or own a home?” on credit and loan applications. Securing a home loan is no small feat. Making your payments on time can help boost your credit score and show other creditors out there that you’re a good bet.
You may be able to receive a tax deduction for your property taxes, mortgage insurance expenses and other costs associated with homeownership. It’s always best to consult with a tax professional.