4 Reasons to Choose Home Ownership
Is owning a home right for you? At one point or another, this question pops up in everyone’s mind, and it’s important to weigh your options carefully depending on your personal circumstances and finances. To help you decide if owning a home makes the most sense for you, here are some of the main reasons people choose home ownership!
While home prices are constantly cycling, buying and staying in your house for a long time could result in an increase in value which also means a good return on your investment. Per Zillow Research, there is data that indicates that the median home value grew between 2016 and 2018. Price increases, however, can also be linked to inflation and not a real appreciation of the value of the house. The biggest determining factor on home appreciation is location, location, location!
Simply defined, home equity is the percentage of your home’s value that you own. When you subtract the amount you owe on your home loan from the total value of your house, the amount left over is your home equity. Instead of losing your rent payments to a landlord, your monthly mortgage payments allow you to invest in yourself and tap into that home equity down the road if needed. Home equity can be used to make home improvements, pay for education, pay off or consolidate higher-interest debts, use as an emergency fund, or take advantage of a smart financial investment.
When you buy a house and consistently make your monthly loan payments on time, it demonstrates to other lenders that your risk of you defaulting on a loan is very low. This strong credit history will be helpful down the road when you apply for other loans like buying a car or making home improvements.
Your Home Your Way
Home ownership offers tremendous freedom to create the living environment that you have always wanted. You can own pets, paint rooms whatever color you like, make changes to floors and carpeting and do all the things that make a house your home – all without having to get approval from a landlord.
Knowledge is power, so keep these common home buyer mistakes in mind when you begin your home search!
You’ve made your move, but you still need to unpack everything to make your new house feel like home. Where do you even start? Let us unpack some of our efficient tips and strategies!
While it is often misunderstood, private mortgage insurance is not necessarily a cost for buyers to focus on avoiding. Let’s review PMI and all its pros and cons!