For many people living in the United States, owning a home is the quintessential American dream. And for good reason. There are many benefits owning a home offers that renting doesn’t. As we wrap up National Homeownership Month this June, we’ve put together five of the biggest to consider if you’re thinking about making the switch from renting to buying.
- Owning a home may help you build equity. Houses in many markets across the country increase in value over time. Add to that the value of improvements you make to your home, and it’s likely to be worth more than you paid for it within several years. Plus, every time you make your monthly mortgage payment, you gain a little bit more equity in the property.
- You’ll typically have fewer restrictions than you would if you were renting. When you buy your home, you can have pets, decorate it any way you like and tackle home improvement projects without consulting your landlord. However, you may need to check with your homeowner’s association—if you have one—before making changes to the exterior of your home.
- You become part of the community. In general, homeowners tend to stick around longer than renters. As you stay in one place, you’ll form new relationships, get involved with local organizations and become a part of the community where you live.
- You may be able to take advantage of tax benefits that are available only to homeowners. Talk to a tax professional to find out whether you qualify.
- If you opt for a fixed-rate mortgage, your payment will be the same each month, whereas rental rates frequently increase from year to year. That means every time you get a raise at work your mortgage becomes a little more affordable.
If you’re ready to become a homeowner, our Licensed Mortgage Professionals are standing by to help you find the mortgage product that’s right for you.