What Are Some Long-Term Benefits of Owning Your Own Home?
There have been several shifts in the housing market over the past several months that have slowed down the current market, including rising mortgage rates, inflation, and concerns about a possible recession. This has many people wondering if it is a good idea to buy a home or to wait. Even though there are certain challenges that must be navigated through in today’s real estate market, it is important to consider the lasting benefits of being a homeowner. If you have questions about buying a home in Knoxville, Maryville, Lenoir City, or Gatlinburg, Tennessee, Foundation Mortgage is here to help. Continue reading to learn more about the long-term advantages of owning your own home.
Building Equity While Investing In a Home
Purchasing a property is likely one of the most significant investments you can make within your lifetime. When you begin making mortgage payments on your home, you are no longer paying rent and contributing to the profit of a landlord, instead, you are building your home equity. As you reduce the amount you owe by paying off your mortgage, your home builds equity and its value also increases. Even with the recent moderation of the housing market, home values are still increasing. When you have a higher amount of home equity, you can consider a cash-out refinance to help you pay for other expenses by cashing out some of your home equity, or you can eventually pay off your home loan and have less expenses or sell the home for a profit. Most people rarely regret the decision to buy a home because both the equity and the value grow over time.
What Are Some Other Advantages to Owning a Home?
Besides building up home equity and appreciation, there are other advantages to buying your own home. First of all, when you own your own home, you are in control and have the flexibility of making renovations, having pets, having more privacy, etc., unlike renting out a residence. Making consistent mortgage payments also helps to improve your credit score after a period of time because it demonstrates that you have the ability to repay the loan. Home ownership also can offer a sense of stability in your lifestyle. Most homeowners tend to stay in their home over a longer duration of time than renters, which contributes to more community and social involvement.
Don’t Let Recent Real Estate Trends Get In the Way of Becoming a Homeowner
Even though there have been shifts in the housing market, you shouldn’t let that hinder your dream of home ownership. It is almost certain that your investment will increase your wealth over time. If you are looking to buy a home in Knoxville, Maryville, Lenoir City, or Gatlinburg, Tennessee, contact Foundation Mortgage today for a consultation.