My Top Reasons to Buy a Home (a.k.a. the Benefits to Home Ownership)
Homeownership is one of the most rewarding aspects of our society. We each have the ability to own a piece of property and the building on top of the land. But, did you know that with homeownership come some great benefits that are only afforded to people with mortgages?
Credit
The first benefit to home ownership is what years and years of on time payments will do for your credit rating. Whether you are rebuilding your credit or have had good credit to begin with, a monthly mortgage payment is sure to make your credit more attractive. As I have moved forward with my homeownership, I have been able to finance smaller things at a much better interest rate because of how good my credit looks with my years of on time payments.
Equity
Another benefit to owning a home is the equity that you build during the time that you own the property. If you, for instance, purchase your home for $200,000 and a couple of years later that same property is now worth $300,000, you now have $100,000 to play with. I say “play” very hesitantly, but you now have a financial tool to use. In case of emergencies I have the option of refinancing my house. Or, I also have the ability to take out a second mortgage or home equity line of credit. Either way, should a good investment or business opportunity arise, I do not get left out.
Reverse Mortgages
An added benefit to owning a home as you look to the future is the reverse mortgage. Although this does not apply to me, if you are older than 62 years old and are a little concerned about your financial well being, ask your mortgage lender about a reverse mortgage. By using this tool and the equity in your home, a homeowner will essentially “sell” their mortgage to the mortgage company. That company in turn sends you, the homeowner, a check every month. That is extra money right in your pocket!
Lifestyle
Finally, we shouldn’t skip the benefits of homeownership that have nothing to do with money. Owning a decent-sized house means that you are now able to entertain family an friends during the holidays! You will now have the ability to have parties and get-togethers. On such occasions, having your friends bring a friend that you have never met, allows you to expand your social and business network.
