The Benefits of Owning a Home

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November 1, 2023

What Exactly are the Benefits of Owning a House Today?

Owning a home nowadays can seem like a challenge with rising home prices across the country. In fact, according to investor Barbara Corcoran, home prices “are going to go through the roof” once interest rates drop at any point this year. While people can choose to rent instead of buying a house, the surge in rental prices is so significant that some are opting to buy. Of course, there are some drawbacks to owning a home, like the threat of depreciation, being tied down to one property, and the cost of a down payment. However, it’s worth noting that home ownership has considerable financial and social benefits to consider! Whether you are a renter looking to buy or a first time homeowner, you may want to learn more about the benefits of owning a home.

Here are some examples of the benefits of owning a home today or at any other time:

Having Control of Your Monthly Housing Payment

Homeowners who opt for a 30-year fixed-rate mortgage benefit from a stable monthly payment for the entire duration of the loan. Unlike renters, who risk dealing with higher landlord prices, homeowners don’t have to worry about any changes throughout those 30 years. In fact, the principal and interest payments on a fixed-rate mortgage stay the same during the loan duration, and homeowners can even lower their payments by refinancing if rates drop in the future. However, if you’re confident about paying a higher mortgage rate, you can choose a 15-year fixed rate to repay your loan faster!

No matter which mortgage you choose for a home, you can expect to have more control over what you pay than in some rental scenarios. Speak with a Real Estate Agent in Encinitas today for more information about a 15 or 30-year fixed-rate mortgage.

Getting the Chance to Build Your Home’s Equity

In case you don’t know, home equity is the difference between what you owe on your mortgage and what your home is currently worth. You can either build your home’s equity by paying your mortgage on time or tracking your property’s appreciation over time.

Building home equity is one of the major benefits of owning a home. It allows you to have a valuable asset that you can tap into for financial opportunities in the future. Not only does building home equity provide financial security, but it also gives homeowners a sense of pride and accomplishment.

Predictability

When you own a home and have a mortgage payment, you can generally have a lot of predictability when it comes to your monthly payment. While rent prices can easily rise depending on the price of rent in your area, owning a home comes with a little bit more comfort. You have peace of mind by knowing that your mortgage payment will remain the same throughout the duration of your fixed-rate mortgage.

Freedom

Your house is yours to change, repair, and renovate! When you are still renting, you may not have as much flexibility when it comes to the style and decor of your home. Owning a home gives you the freedom to make it your own and customize it to your liking. Many think this is one of the best benefits of owning a home!

If you are stuck deciding between renting vs. owning a home, it ultimately comes down to your lifestyle, financial situation, and preferences!