First Time Home Buyer Programs
THE POSITIVE OUTCOMES TO BUYING YOUR FIRST HOME
Buying a home is a great lifetime achievement. It could perhaps be one of the biggest financial transactions you will pull up in your entire life. Apart from being exciting that you have a property to your name and changing your status from a lessee to a landlord, there are many other advantages of buying your first home.
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Here are a few of the positive outcomes of buying your first home.
A good long-term investment
Buying a home is perhaps the best long-term investment for an average American. It is an appreciating investment. Home prices increase over time which makes it a good investment for the future.
More stable housing costs
Owning your first home means you won’t have to deal with potential price increases in leasing costs or finding a new apartment. Buying a new home comes with several expenses, but its costs remain consistent.
Builds equity
Equity is the amount of the value of the property you own, calculated by subtracting your mortgage balance from the home’s market value. It grows over time as the market value of your home increases. As your equity grows, you can get more borrowing and purchasing power.
Tax benefits
As a first-time homeowner, you have several tax advantages. You can get to deduct both mortgage interest (of up to $1 million) and property taxes from your annual income taxes. And most of the money you pay on your mortgage goes to interest.
Credit builder
Taking out a mortgage can positively impact your credit, that’s if you continue to make your full mortgage payment on time. As you reduce your mortgage balance, credit utilization also creases, which helps to build your credit score.
A source of ready cash
More home equity means a better chance to borrow more money as a home equity loan or a home equity line of credit. You can easily tap into your equity to help fund home improvements or pay off some personal debts.
Privacy
Owning a property gives you complete control over it and the projects you want to take on. You can renovate it to your liking, which is benefit renters don’t enjoy. You even get the privacy of living in the space with just your family and do not have to share with other people.
Home security
Renting a house means you risk harsh decisions from a landlord at any time. Your family’s stability is based on the landlord’s decision. Buying your first home puts you way above the instability and inconvenience. That’s priceless.
Final Thought
If you are contemplating buying a home or continuing renting, there are many factors to weigh up. However, owning a house brings a great feeling and many positive outcomes. If you think buying a home is the best option for you and want down payment assistance in California, contact My-Down Payment Assistance.com today.