Considering your first time home purchase and becoming a home owner? Then you need to plan for a mortgage. Learn why this is a benefit as well as other benefits to purchasing below.
Understanding the benefits will help you weigh the idea of home ownership with the money you are spending now. Perhaps there is more of a savings than you realized.
You probably started out on your own by renting a place. Remember that feeling? How exciting to have a place of your own. But now you're evaluating the money.
That means your thinking! Renting has its place for a while, but there's a time to consider home ownership. Below I'm going to discuss why home ownership is a better way to go and why you should consider a mortgage.
So let's take a look at the first benefit.
Becoming a home owner is an adventure, especially since the economy has undergone such changes. Many people have had to give up their homes as mortgages became too difficult for home owners to handle. That is not good for them, but it is a benefit for you. How? You can find a house at a really great price!
Since all of the changes came with the economy, buying a home is now better than ever. For the first time in years, many people can actually afford to buy their first home and with many benefits. First time home buyers benefits vary from state to state but there are many that are the same no matter where you live.
One of those is you can deduct from your income tax any interest paid on the mortgage and any property taxes you pay. This is a big plus. When you started renting, you probably didn't have enough deductions to use. Now that will change with the purchase of a home. There are various tax savings you can take all because of buying a house mortgage!
Periodically, the government has other tax savings that can benefit home owners. For example, in the past, you could deduct the cost of putting vinyl windows in your home. Or updating your heating system, etc.
When you're renting, these are benefits the landlord can take advantage of. But when you're a home owner......ahhhhh you benefit!
One of the first time home buyers benefits is the homestead exemption. This may not be available in all states. But if it's offered in your state, you will have an awesome tax break. This means you pay lower property taxes as well as some other great perks.
Most people are not fully aware of what the homestead laws are for. They help keep a home from being sold in a forced sale when the home owner dies. The homestead laws also help to insure the spouse will have shelter. This tax credit is available as long as the home owner resides in the home.
This is another benefit of buying a home mortgage! You cannot get this from renting!
First time home buyers benefits also include the possibility of getting such loans as FHA loans. These particular programs are designed to help you! They make home ownership possible at a lower cost. Anything you can save money, that's a benefit right?
Well, since you are a first time purchaser, you can qualify for a lower down payment, lower credit requirements, and flexible qualifying options.
Now you can even get the mortgage at a better price with a competitive interest rate!
Most people don't have enough money saved to pay cash for a home, so you need a mortgage. Taking advantage of the FHA home ownership benefit makes it more cost effective for you.
Owning your home allows you the opportunity to build equity. What do I mean? Over time the house usually increases in value. That means money in your pocket later in life.
When you rent, the money goes to the landlord. Then you face the fact that over time the rents go up. When you own a house your payments are fixed (although taxes may go up or down which affects the payment).
Also you have the home. You cannot sell your rental unit to get any of your rents back. Only the landlord can do that. But with home ownership you do have something you can sell and usually get your original money back plus more. Of course this depends on how long you are in the house and what the going market is.
Buying your first home is exciting and you should make sure that you get all the benefits that are coming to you. First time home buyers benefits help people get into their first home with little to no trouble.
Check out the various programs at Home Buyer Programs to find the best one for you.
Want to learn more about loans? Home Buyer Loans will explain the process for you.
Perhaps you want to understand the Zero Down Home Loan Product. This page will help you understand how zero down home loans work and if it is a good option for you.
But you say you have more questions! That's okay, Have a Question is an awesome place to see what others have asked or to ask your own questions and have an expert answer them for you.
Go to House Buyer Solutions Home Page.
Oct 08, 19 08:33 AM
Hello, I have a question regarding USDA vs. FHA home loans. I am in the process of getting a home in the next month but was told I wouldn't be approved
Aug 05, 19 10:44 PM
Hi Help please! I am a first time home buyer, buying a home with my fiance'. He is selling his home currently on the market for $125K with no contingencies.
Apr 15, 19 12:36 PM
When buying a home out of state, should we wait for employment contracts? Or can we use our current state's bank? Find the answers here.
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