5 Reasons Homeownership Makes ‘Cents’

Building Equity Saves You Money

Paying your mortgage each month allows you to build equity in your home that you can tap into later in life for renovations, to pay off high-interest credit card debt, or even send a child to college.

Locked Monthly Housing Cost

When you purchase your home with a fixed-rate mortgage, you lock in your monthly housing cost for the next 5, 15, or 30 years. Interest rates remained around 4% all last year, marking some of the lowest rates in history. The value of your home will continue to rise with inflation, but your monthly costs will not.

Buying is Cheaper Than Renting

According to the latest report from Trulia, it is now 37.4% less expensive to buy a home of your own than to rent in the U.S. That number varies throughout the country but ranges from 6.5% cheaper in San Jose, CA to 50.1% cheaper in Detroit, MI.

Save on Taxes

You may be able to deduct your mortgage interest, property taxes, and profits from selling your home, but make sure to always check with your accountant first to find out which tax advantages apply to you in your area.

An Investment You Can Enjoy

You can choose to invest your money in gold or the stock market, but you will still need somewhere to live. In a home that you own, you can wake up every morning knowing that your investment is gaining value while providing you a safe place to live.