10 Reasons To Own Your Own Home

 

1. Equity: Money paid for rent is money that you will never see again, but mortgage payments let you build equity in your home.

 

2. Savings: Building equity in your home is a ready-made savings plan.

 

3. Predictability: Unlike rent, your fixed-rate mortgage payments do not go up over the years. However, keep in mind that your property taxes & insurance will rise.

 

4. Freedom: The home is yours! You can decorate any way you want and be able to benefit from your investment for as long as you own your home.

 

5. Stability: Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships and offers your children the benefit of educational continuity.

 

6. Owning your own home is the #1 way to build financial security:

The federal reserve reports homeowners have on average $184,000 in household wealth vs. renters whose net worth on average is $4,000.

 

7. Home Ownership gives children a better start: Studies show that children of home owners have higher education levels, a lower rate of teen pregnancy & higher test scores.

 

8. You no longer need a big down payment with FHA: FHA requires as little as 3.5% down payment and the interest rates are the lowest they have ever been in over 30 years.

 

9. Mortgage Interest and Private Mortgage Insurance may be Tax Deductible: * For the first few years of a mortgage loan, it is typical that the vast majority of your payment is made up of interest and for many, that could mean a significant tax savings.*

 

10. It is a good time to buy: In today's market, the affordable housing prices, large inventories of homes available and low mortgage rates provide a great opportunity for many first time homebuyers.

 

Prepare Yourself for Home Ownership

Consider how much you spend on rent over time

Monthly Rent 1 Year 2 Years 5 Years 10 Years 15 Years 30 Years
$1,000 $12,000 $24,000 $60,000 $120,000 $180,000 $360,000
$1,200 $14,400 $28,800 $72,000 $144,000 $216,000 $432,000
$1,500 $18,000 $36,000 $90,000 $180,000 $270,000 $540,000
$2,000 $24,000 $48,000 $120,000 $240,000 $360,000 $720,000
$2,500 $30,000 $60,000 $150,000 $300,000 $450,000 $900,000

Chart calculates cumulative rent payments over time for illustrative purposes only. No rent increases or adjustments were used in these calculations.

 

 

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