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Are you curious about why a person would choose to be a homeowner instead of renting? Owning your own home offers unique financial and personal benefits. From physical stability to long term savings, let’s explore the top homeownership advantages.
Each time you make a monthly rental payment; you’re helping your landlord pay down their mortgage. Your money should be going to your own debts—not someone else’s. Instead, when you make a monthly payment on your own property, you build equity.
Equity is the difference between your property’s market value and the outstanding balance of any loans secured by the property, typically your mortgage. As you make payments and complete improvements to your home, your equity grows. You can use the equity for numerous things, including debt consolidation or additional home improvements.
Owning an asset and building equity gives homeowners a distinct economic advantage over renters. In the Federal Reserve’s most recent Survey of Consumer Finances, median homeowner net worth was $396,200 compared to a median net worth of $10,400 for a renter in 2022. When you need to move into a larger house or downsize, the money you put into your existing home may be able to help with the purchase of your new home.
When you’re renting, your monthly payment may increase if your landlord decides to raise the rent. When you own, you’ll be able to choose the loan term and mortgage type. As an example, if you choose a 30-year fixed rate term, your monthly payment will stay the same for those 30 years. You’ll have the option to refinance if rates drop or your equity rises.
Owning a home allows you to make customizations to match your needs! Unlike renting, owning a home gives you the freedom to paint, renovate, knock down walls, or make any other changes to truly make it your own.
Homeownership provides stability within a neighborhood. Research shows many homeowners stay in their neighborhood for at least eight years. As you spend more time in one place, you’ll develop stable friendships, attend events, and be a part of a community.
At Homestead Funding, we pride ourselves on helping our borrowers every step of the way. From application until closing, our Loan Originators ensure you feel supported, confident, and excited about owning a home! Ready to get started? Contact us today!
Homestead Funding offers exceptional customer service and a convenient mortgage process. Whatever your financing needs, our goal is to exceed your expectations.
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