One of the most obvious benefits of homeownership is that you are gaining equity. With each mortgage payment you make, a portion goes toward reducing the amount you owe on your loan, which increases your equity. In addition, as your home increases in value, it creates more equity for you. When you subtract the amount you owe on your home from the total value of your home, the amount leftover is your home equity, or the "dollar" value of your home that actually belongs to you.
2. You're Making an Investment.
When you rent your home, you get little to no return on investment. Paying rent each month doesn't offer any return on investment beyond securing a place to live through the end of the month or lease. Unlike other investments, like a vehicle, a home is a purchase that appreciates over time. While home prices are cyclical, if you stay in your home for a long period of time, it could increase in value, giving you a substantial return on your investment.
3. You Receive Tax Benefits.
Homeownership has some advantages when it comes tax time as well. The federal government encourages homeownership by offering tax incentives. The biggest one being, the option to deduct interest from your mortgage payments on your income tax return. Payments on private mortgage insurance and certain home-related purchases may also qualify for tax benefits.
When you own your own home, you have the freedom to do whatever you want to it. You can paint the walls whatever color you desire, alter the layout of the home and more! Renting doesn't usually come with a lot of options for modifying your living space to better suit your needs. Homeownership allows you to live life by your own rules. Plus, home improvements typically lead to increased home value.
5. You Save Money in the Long-Term.
While there are upfront costs to purchasing a home at the Lake of the Ozarks, if you stay in the same place long enough, you'll most likely be saving money. In the majority of U.S. markets, owning a home is less expensive than paying rent. Consider a $1000 per month rent payment. Over 10 years, that adds up to $120,000 that you could be using to pay down a mortgage instead of handing it over to a landlord. That doesn't even factor in that rent prices are constantly rising. When you purchase a home, you can lock in your monthly payment for 30 years!
With interest rates still low, now is a great time to consider homeownership and start taking advantage of these benefits. Give me a call at 573-746-7211 to discuss your Lake of the Ozarks home financing needs today! As your Lake of the Ozarks mortgage lender, I'll be here to work with you every step of the way, from the pre-approval to the closing and beyond.
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Senior Loan Officer
NMLS #: 493712
4655 B Osage Beach Parkway
Osage Beach, MO 65065
**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.