Taking the leap into home ownership is a big decision, and there are many factors to consider before going on the hunt for the perfect homestead. When you are ready to make that leap, you will quickly realize there are many benefits to owning a home. Here, we outline some reasons to consider taking that leap!
Building Equity and Credit
A home is not only an investment in your quality of life and future, but also your financial stability. Unlike renting, your monthly payment doesn’t go towards someone else’s investment, it goes toward your own. Owning a home allows you to build equity over time. Equity is the difference between your home’s value and the remaining loan balance. As you pay down your loan, your equity will typically go up over time.
Making full, on-time payments towards your home loan can also help boost your credit score. A high credit score can help with future finance opportunities. Oftentimes, rent payments are not reported to credit bureaus and therefore, do not count towards a credit score.
Stability and Security
Home ownership provides a space of stability. You as the owner have full control over the living space. You can make any modifications or renovate it to your liking, without the limitations that typically come with a rental space.
This ownership also brings a sense of security. If you have a fixed-rate mortgage, you can count on a consistent monthly payment for the life of the loan. When you rent, your rent rate will be evaluated at the end of each lease agreement and could potentially go up.
Tax Advantages
- Home mortgage interest is tax deductible, which could mean a reduction in the amount of federal taxes you owe.
- Mortgage insurance premiums may also be tax deductible, depending on your income.
- Property taxes can also be deducted up to $10,000 if you’re single or married filing taxes together. The deduction limit goes down to 5,000 if you’re married but filing separately.
Building Pride and Roots
Owning a home and being part of a community brings a sense of pride. Not only do you have the freedom to personalize your space that reflects your style, more importantly, you are building roots and a foundation to build on. When you buy a home and settle down in a community, you can engage with neighbors, make friends, and host the next family gathering.
Get Started
Whether you plan to purchase a home or put on the hard hat to build your dream house, GreenStone is here with flexible financing options to fit your needs.
Read more about our loan options here by scrolling down to the “Country Living” section.
To get started on a loan application, click here, or have a conversation about your next steps by reaching out to your local branch today!
