⌂ Tax deductions:
Although they’re the stuff that bill-paying grumbles are made of, mortgage interest and property tax obligations are a homeowner’s best friend come April 15. For both federal and state income taxes, these payments are usually fully deductible. And in the first years after a home purchase, most of the money paid toward those mortgage payments represents interest. Think of it as a government subsidy on the purchase. In addition, many closing costs, such as points paid and fees for your loan application and appraisal, may be deductible, either immediately or down the line when you plant that “For Sale” sign in your lawn.
⌂ Build Equity:
Your equity in your home is the amount of money you can sell it for minus what you still owe on it. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe. That reduction of your mortgage every month increases your equity. The way mortgages work, the principal portion of your payment increases slightly every month year after year. It’s lowest on your first payment and highest on your last payment. Thus, as the months and years go by, your equity grows.
⌂ Built in Savings
Paying a mortgage every month allows you to reduce the amount you owe on the home. So, in essence it’s like depositing money into a 401K plan or Savings that you can’t touch until you sell and start swimming in all the cash you just fell into.
When you own your home you don’t have to ask for permission to make improvements or simple updates of your liking. Want to change the color of the bathroom?, go ahead, you own it. You get to make the decisions.
There are many other benefits to owning your home, but for now these are a few important ones. Do you want to know more benefit?. Contact us and we will be happy to give you as many as you can shake a stick at!