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June is often a time for celebration. It marks the end of school, the beginning of summer days, and National Homeownership Month. This month-long observation serves as a time to celebrate what homeownership has done for Americans, both individually and within communities.
National Homeownership Month began as National Homeownership Week in 1995 to encourage homeowners to share the benefits of homeownership. In 2002, it was federally expanded to be a full observance month. Now, in its 23rd year of celebration, National Homeownership Month is a celebratory observation of the value that owning a home brings to families, communities, and neighborhoods.
According to data from the Federal Reserve, the net worth of a typical homeowner is nearly 40x the net worth of a non-owner. When you rent a home, your monthly payments contribute to the payment of your landlord’s mortgage. Instead, your monthly mortgage payments directly reflect how much of your property you own and help increase your home equity. This building wealth creates more opportunities for families to pass down financial assets to younger generations.
Many renters often worry about rising monthly payments at the end of their lease terms. Many homeowners don’t have this stress. With a fixed rate mortgage, your monthly payments remain the same for the entirety of the loan terms. In addition to building your equity, your on-time payments raise your credit score. A higher credit score has various benefits, including obtaining a lower interest rate when it becomes time to refinance.
Renters only stay in their residences for about 25% of the duration as homeowners, according to research from Habitat for Humanity. When a person lives in their home, they’re often in the same location for at least five years. Your school and property taxes contribute to improving local services, such as road repair, green spaces, and school and library operations.
In addition, those in stable neighborhoods are more likely to join or attend community efforts, like sports leagues, volunteer organizations, school boards, or religious services. The participation in neighborhood activities contributes to job creations and boosts to the economy.
When you’re ready to embrace homeownership, contact us today! Our Licensed Loan Originators work hard every day to find the best financing solutions for our borrowers to make your homeownership dreams come true.
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.