FIRST TIME HOME BUYER BENEFITS OF HOME OWNERSHIP
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Better Mortgage Choices When you are in a position to become a first time owner, there are many programs offered to those buying for the first time. Sometimes you can find even better interest rates.
One mortgage product that is available to those making a first time purchase is the FHA loan products. They were created just for you, the first buyer. So that's one benefit, it you're ready to buy a home and it fits your personal circumstances. Here are more. Home Equity
Home equity is an awesome benefit. When you rent, the money is paid to the landlord and is gone. You cannot go back and borrow it when there is an emergency can you? But when you buy, your home will appreciate in value, if you buy in the right area. It is true that sometimes the markets go up and go down. But over the long term homes usually appreciate in value. That is like money in the bank! Let me give you an example. My first home purchase was $16,000! But it sold for $45,000. You see what I'm talking about. The difference between what you paid for the home and what it is worth over time is your equity. When an emergency comes up you can borrow against that equity for help. Or wait until you sell the home to pocket that equity. Or you could use that equity to buy a bigger home. That is what I did. You can also offset your taxes by deducting the interest you pay on your loan yearly. This is a nice deduction and can help lower the amount of income taxes you pay each year.
Pride of Ownership Let's not discount the benefit of pride of ownership. You can choose your own taste to decorate your living space. You don't have anyone else deciding for you the color you want to paint your walls. You design your yard the way you want to and sit back and truly enjoy what you have accomplished. You can play your music the way you want to and don't have neighbors pounding on the walls telling you to turn it down. This is a top notch first time home buyer benefit. Buying your first home is one of the most exciting times for a person for many reasons. You get to take that wonderful journey of looking for that perfect place to call home while taking advantage of these many benefits. There's nothing like having something you call your own! Can you see why I see this as one of the first time home buyer benefits?
Homestead Exemption Some states offer what is called a homestead exemption. This gives first time home buyers a $25,000 credit applied to their yearly home owner taxes. This can only be used on the first home you purchase and you have to reside in that home. If your state offers this, then you will love this one of the first time home buyer benefits. First Time Home Buyer Benefits - No Rent Increases This is the benefit that pays over the long run. Once your payment is set up, your mortgage payment will essentially remain the same. It is true, if your taxes and insurance is included in the payment, then the payment may adjust because of them. But basically your monthly housing cost remains the same. Also, it should be a fixed mortgage to remain the same. Whether a 15 year, 20 year, or 30 year, fixed means the payment for your mortgage is the same. Now if you get and adjustable rate mortgage, it will adjust either up or down. That's what the word adjustable means. But as a first time buyer, you shouldn't be looking at adjustables anyway. Fixed is best for you! When you rent, you know that the rent is going to increase. Unfortunately, that's a fact of life. Let me use an example for you of how that is a benefit. Back in the 1970's when I bought my first home, my mortgage payment was $145 a month. I sold that home in the 1990's, but for a monthly expense of $145 a month......you couldn't even considering renting for that then! Now you see why I consider it one of the first time home buyer benefits over the long term! In order to fully understand all of the first time home buyer benefits available to you, you will want to check with a lender or a real estate agent. Be sure to read all of the fine print in the papers that the lender gives you. You don't want any surprises!Â
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