Benefits of Home Ownership

Home ownership is often called the "American Dream" because of the pride that comes with owning a place you can personalize and call your own. However, beyond these intangible benefits, it is important to consider the following benefits when determining whether to rent or buy:

Building Equity
Home ownership allows you to build equity with each mortgage payment. In fact, the equity that you build by paying down your home loan can be viewed as a kind of savings program.

Tax Benefits
Homeowners receive substantial tax deductions related to their mortgage payments. Both mortgage interest and real estate taxes are deductible from your federal and many state income taxes.

Solid Investment
Despite the current appeal of the stock market, many analysts continue to believe that real estate is one of the safer investment options. Plus, as your home increases in value you can get low cost loans for any purpose by borrowing against the added equity (home equity loan).

While not the answer for everyone, the above benefits make buying a home something that every renter should consider. To find out if buying is the right option for you, try our Rent vs. Own calculator.