Buying a home is one of the biggest decisions of your life. Finding the right place for the right price can be an overwhelming process. While owning a home is a financial commitment, first-time-buyers have made the decision that owning a home makes more sense financially and from a lifestyle perspective than renting. There are endless benefits of owning a home. The current real estate and mortgage market have created the perfect opportunity for buyers to transition from writing rent checks to investing in their own home. From tax advantages, growing equity, to
having a place to call your own, this milestone offers a sense of pride and accomplishment.
1. Low Interest Rates
Rarely will we see interest rates like we are seeing now. It’s important to understand what an interest rate is before you begin your house hunting journey. An interest rate is the amount a lender charges a borrower and is a percentage of the principal—the amount loaned. What may seem like a slight difference in your mortgage rate can make a huge difference in your monthly payment. Rates can vary depending on credit score and where you are buying, but with the lowest rates at or near 2.75% the time may never be better to buy. This is also one of the reasons homes are selling so quickly. An interest rate of below 3% comes close to borrowing money for free. It’s not free, of course, but it’s close.
2. Building Equity
Your home equity is the portion of your home that belongs to you, calculated by subtracting your mortgage balance from the home’s market value. There are two ways to build home equity, make your monthly mortgage payments, and track your home’s appreciation over time. Home values have risen and are expected to continue rising in the future, making homeownership a profitable long-term investment. You receive that home equity as cash when you sell your home. Renters, on the other hand, won’t recoup any housing costs they spent while living in their rented space. With each loan payment, your home equity would grow and give you more borrowing and purchasing power.
3. A Rewarding Experience
Most importantly, home ownership can be a wonderfully rewarding experience, and you deserve to be part of it. By owning a home you have created a great investment because it’s a method of forced savings. Owning a home creates benefits such as a sense of stability, greater privacy, stable monthly payments, and so much more. Take a chance on yourself, and invest in a home that will give you a place to belong to. Many people strive to own a home.. In addition to the financial benefits, owning a home provides security and privacy. Many homeowners enjoy feeling like
part of a community and the ability to personalize their living space. If you plan on staying in a community for several years, owning a home is a great way to save money. Numerous studies argue that home ownership has a wide range of benefits on child and family development. When you own a home, you do something good for yourself and your family.