The Benefits of Homeownership
Owning a home provides financial stability, long-term value, and a sense of community. Explore the key benefits and how homeownership can improve your life.
Must be 18 or older to apply. Loans subject to credit approval.
Key Takeaways
1
Why is Building Equity Important in Homeownership? Learn how building equity can be a cornerstone of your financial future.
2
What Tax Benefits Does Homeownership Offer? Discover how owning a home can provide significant tax advantages.
3
What are the Benefits of Owning a House vs. Renting? Explore the benefits of owning your home.
4
What are the Flexible Mortgage Options Available Today? Understand the various mortgage financing options that make homeownership more accessible.
5
How Can FSB Help You Achieve Your Homeownership Dreams? Find out how FSB's personalized mortgage solutions can pave the way to owning your dream home.
The Journey of Homeownership
Homeownership has come a long way since the late 1800s. The Homestead Act of 1862 and the National Bank Acts of the 1860s laid the groundwork for the modern mortgage system.
Post the Great Depression, the GI Bill in 1944 further revolutionized this, making homeownership achievable for the masses, especially WWII veterans.
Historical Significance
The evolution of homeownership has been a cornerstone in shaping a stable and prosperous society.
Building Equity in Your Home
Building equity is a primary reason for buying a home. Building equity in your home is similar to a long-term financial commitment, like investing in bonds. Essentially, it means your money is invested in your property and is not readily available for spending.
But what is the benefit of building equity?
Equity vs. Renting
Home equity increases as you make regular payments on your mortgage, reducing the loan amount while your property’s value appreciates. However, market fluctuations can significantly influence this growth.
Recent Market Trends
For instance, the recent rise in home prices has led to substantial equity boosts for homeowners with mortgages.
According to CoreLogic, these homeowners experienced an impressive 5.2% annual increase in equity. Remarkably, this growth was at 29.3% in 2020.
Leveraging Your Home Equity
Once you’ve built up sufficient equity in your home, you can leverage it through a Home Equity Line of Credit (HELOC) or a cash-out refinance.
Tax Benefits of Homeownership
Homeownership can lead to significant tax deductions. Often, you can deduct any interest paid on your mortgage loan from your income taxes, along with property taxes paid.
Additional Deductible Items
You can also deduct any:
- Private Mortgage Insurance (PMI) payments
- VA loan funding fees
- USDA loan guarantee fees
- FHA loan up-front mortgage insurance premiums
For more about the different tax benefits, visit the IRS's website.
Customizing Your Own Space
Renting often comes with several stipulations about what can be done to the property.
Owning a home means the freedom to customize—painting, remodeling, or adding structural features. Make changes that reflect your style and needs without the restrictions of renting.
Personalization & Value
Explore how personal improvements can also add value to your property to help determine which projects to tackle first.
Flexible Mortgage Options
Gone are the days when you couldn't get a mortgage loan without 20% down (FSB's Down Payment Solutions).
Today’s mortgage options make homeownership more accessible. With flexible terms, 15- and 30-year choices, and available grants, it's easier to find the right mortgage option for you.
FSB's Role in Your Homeownership
Start building your future with FSB’s personalized mortgage solutions. Contact a lender for quick assistance, or apply online today!
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Must be 18 or older to apply. Loans subject to credit approval.
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