The Top 5 Benefits of Owning a Home
Purchasing a home can feel like an overwhelming project, but the long-term advantages of homeownership make it a smart investment to secure your future where the benefits extend beyond simply having a place to live. Building equity is one of the most significant advantages of owning a home. As you make mortgage payments, your equity increases, and over time, your home can become a valuable asset to use the equity to finance home improvements, pay for college tuition, or even as a down payment on a second home. Two factors determine equity; the home going up in value and the unpaid balance of the mortgage being paid down. Appreciation is the increase in value expressed in an annual amount. Homes have averaged 4% nationally for the past 50 years. Amortization is the systematic principal reduction that occurs with each house payment made. Another advantage of buying a house is the stability of housing costs. With a fixed-rate mortgage, your monthly princi...