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January 21 marks a significant day in history - Own Your Home Day! This day is a reminder of the journey that started as a rare opportunity in the past to its accessibility today. Let's dive into how homeownership and home loans, in general, have evolved and why it's a cherished goal for many. |
Key Takeaways
Table of Contents
The Journey of HomeownershipHomeownership 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 SignificanceThe evolution of homeownership has been a cornerstone in shaping a stable and prosperous society. Building Equity in Your HomeBuilding equity is a primary reason for choosing to buy. 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. RentingHome 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. 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. Once you've built up sufficient equity in your home, you can leverage it. You can access this equity through a Home Equity Line of Credit (HELOC), or a cash-out refinance. Tax Benefits of HomeownershipHomeownership 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. You can also deduct any Private Mortgage Insurance (PMI) payments, VA loan funding fees, USDA loan guarantee fees, and FHA loan up-front mortgage insurance premiums if they apply to you. For more about the different tax benefits, visit the IRS's website. Customizing Your Own SpaceRenting often comes with several stipulations as to what can be done to the property. Owning a home means the freedom to customize, such as painting, remodeling, or adding structural features. Make changes that reflect your style and needs without the restrictions of renting. Personalization and ValueExplore how personal improvements can also add value to your property. Flexible Mortgage OptionsGone are the days when you couldn't get a mortgage loan without 20% down (FSB's Down Payment Solutions). Today's mortgage landscape offers a variety of options, making homeownership attainable for more people. There are flexible terms, both 15- and 30-year options, as well as additional grants making finding the best fit for you easier. FSB's Role in Your HomeownershipJoin the ranks of homeowners and start building your future. FSB is here to guide you with personalized mortgage solutions. Contact a lender for assistance throughout the process (they will walk you through the application in 5 minutes or less), or apply online today! Contact a Mortgage Lender Apply Online Must be 18 years or older. All accounts subject to credit approval.
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