Being a first time home buyer brings with it many personal and financial advantages. By committing to home ownership, you have achieved a common dream, and you have earned the right to benefit from your hard work. Find out here all the ways you benefit financially from being a first time home buyer.
Save Money at Tax Time
Homeowners are rewarded by the federal government, and by many state governments. As a homeowner, you can deduct your mortgage interest and property tax obligations every April 15. And, since most of your mortgage payment goes toward interest in the first few years of home ownership, it's like the government is paying you to buy a house!
Invest Wisely
A home is one of the most secure investments you can find. The national median home price has increased steadily since 1968 when the National Association of REALTORS® started recording and reporting home prices. Even during times of recession, war and home sales declines, prices have climbed steadily upward. If you stay in your home, or keep your home for investment property, you'll likely earn some pretty significant capital gains on your initial investment!
Building Home Equity
Home equity accounts for the portion of your home or property that you actually own, and as you make your mortgage payments every month, your equity continues to rise. You can consider it as a type of savings account, where your house continues to appreciate, and your loan amount continues to decline. Your equity is that difference between the property value and your outstanding loan amount. Therefore, you actually make money as you continue to pay off your mortgage! You certainly can't say that about paying rent.
Learn More About Home Equity Loans
Home Equity Line of Credit
Home Equity Installment Loan
Establish Strong Credit
Buying a home can help people with less-than-perfect, or even bad credit, rebuild their financial standing. By making mortgage payments on time every month, a homeowner can establish another level of credit history. Timely repayments establish your reputation as a positive risk for lenders, meaning that you improve your credit every time you make a payment on time.
Gain Immediate Borrowing Power
Even if you are one of the fortunate buyers who find your dream house early in your life, the equity you build in your home still comes in handy. You can use it to secure a loan or get a line of credit to make home improvements, pay for college, finance an emergency, or even to take a dream vacation. You can even build on your homeownership experience by buying investment property with your equity. Homeownership gives you options.
About Home Purchase Loans
Financial Stability
One of the biggest rewards of being a first time home buyer is the financial stability you have. On a fixed rate mortgage, you know exactly what your payment is for up to 30 years. Even on an adjustable rate mortgage, you have a cap on your rate, and so you can figure out what your maximum possible payment would be. Renters do not have the luxury of knowing with certainty what they will be paying next year, or five years from now. Also, something many people find is that once they buy a home, everything else falls into place, financially and within the community. When you buy a home, you buy a share in your community.
Ready to Be a Homeowner? Apply Now
While buying a home may not be the right decision for everyone, being a first time home buyer does give you certain advantages. To find out whether first time home ownership is for you, try out our Rent vs Own Calculator.
http://www.homeloancenter.com/HomePurchase/FirstTimeHomeowners.aspx
