The Top 10 Benefits of Being a Homeowner

Your first home is something you never forget. Like your first friend, first car, or first teacher, the first home dwells in your memory and lives with you for life. Hopefully, it’s a fond memory that will guide you toward your next home and throughout life’s milestones.

Of course, your first home can also be a frightening prospect and is likely the largest purchase you’ve made up to this point. But it doesn’t have to be a scary. There are many reasons to own rather than rent a home.

Top 10 Benefits of Being a Homeowner

  1. Predictable Monthly Payments – If you buy a home and lock in a loan for 15, 20 or 30 years, your payments will not change each month. Additionally, what you owe on the mortgage goes down with every payment rather than in to your landlord’s bank account. When your lender reviews the loan annually, minor adjustments may be made because of changes to taxes and insurance, but your locked-in rate won’t alter the amount beyond your ability to adjust.
  2. Tax Benefits – Your house payment has four factors: principal, interest, taxes and insurance. The interest and taxes are tax deductible, allowing you to keep most of your hard-earned money. Even your insurance company has ways of lowering your insurance rates through incentives like added insulation and other energy upgrades, which also lower utility bills.
  3. Appreciation – Have you ever heard of anything going down in price? Your home is a valuable asset that will likely go up in value depending on market conditions such as housing supply, interest rates and inflation.
  4. Freedom – Under no other circumstance, will you have the freedom to modify and enhance your living conditions like you do as a homeowner. You no longer need permission to paint, carpet, add a deck or make any number of changes you desire. Until you enter the front door of your own home, the pride and freedom of ownership belonged to your parents or your landlord. Now it belongs to you.
  5. Cheaper – Yes, it may cost more upfront for closing costs and down payment, but the monthly cost of owning your own home is less than paying rent in most markets in the United States. In fact, according to RealtyTrac, in 58% of US markets, it’s cheaper to buy a home rather than pay rent.
  6. Equity – As you pay down your mortgage and the value increases, you’re building equity in your valuable asset. As your equity grows and you live there a number of years, you may want to use the equity for improvements or to pay down other debt which also improves your financial circumstances.
  7. Privacy & Safety – The apartment you lived in during your college years may have been drafty or noisy and was made of inferior materials. However, your own house can be built of higher quality materials and surrounded by privacy fencing, security cameras, lighting, awnings and shutters.
  8. Community – When you live in a house you love and plan to live there for a number of years, you belong to a community. You pay taxes, support the schools, and care about the streets and infrastructure. You may also take a larger role by knowing your neighbors, volunteering or taking an active role in the neighborhood or local community.
  9. Investment – Buying home when you’re young will have an excellent impact on your retirement in years to come. As a matter fact, if you live in your home for 30 years, not only would you own it free and clear, but it may appreciate by 100% or more. When you’re ready to downsize, you can sell the home or rent it out and use the income stream to travel and enjoy retirement.
  10. Ownership – What does home ownership mean to you? You likely have your own response to the question but here are some more.

Your home:

  • Cannot be taken away
  • Can be changed, updated, improved or modified as you desire
  • Saves you money
  • Secures your retirement
  • Gives you pride
  • Allows you freedom

Missouri Central Credit Union and our partner Pivot Lending Group are excited to help you on the journey to home ownership. Picking the right company to help you through the process is very important and we are here to help. When you call MCCU, you won’t need to navigate through an annoying voicemail system. You will speak with a real person. Our mortgage loan officers will answer all your questions regarding the mortgage loan application, closing costs, down payment, interest rates, and more. Call today.