4 Financial Benefits Of Homeownership

When you think of the American Dream, what comes to mind? If you're like most people, you imagine a family with a few kids, a stable job, and a home of your own. Homeownership has been an integral part of the American Dream since America's birth, and for good reason. Homeowners get to cultivate a stable, nurturing environment in which to raise their children and enjoy the unique sense of pride that only comes from owning a home of their own. However, the perks of homeownership do not stop there - owning a home also has several financial benefits. Here is a quick look at some of these financial benefits, courtesy of the team at First Bank of the Lake.

1. You Can Avoid Rising Housing Costs
As inflation tightens its hold on the United States, both house prices and the cost of rent continue to rise. When you purchase a home with a fixed mortgage, however, you can lock yourself into set monthly payments that will never increase. This financial stability can be a major advantage, especially when you need to make room in your budget for other expenses such as home repairs or a new car.

2. A Portion Of Your Monthly Payment Comes Back To You
It's sad but true - when you write your check for rent, you send that money to your landlord knowing that you will never again see a single penny of that money. However, making your monthly mortgage payment is entirely different. While the majority of your payments go toward interest (especially towards the beginning of your term), some of it goes towards paying off your principal. When it comes time to sell your home, you can get money back from the sale - possibly even more than you originally paid for the property.

3. You Build Home Equity
Every dollar that you put towards the principal of your mortgage loan comes back to you in the form of home equity. Equity refers to the dollar amount of your home that you actually own; the home's current market value minus your outstanding loan balance. You build equity by paying back your loan, as well as by increasing your home's value through upgrades and remodels. Home equity can be used to fund any number of things - a child's college education, major remodels, retirement, and more.

4. You Get Tax Deductions
Homeownership is one of the few major expenses that still qualifies as certain tax deductions. In most cases, homeowners are able to deduct the money they spent on mortgage interest and (if applicable) private mortgage insurance (PMI). These deductions can be a huge help when tax season rolls around. However, it is important to be aware that many of the other costs of homeownership (upgrades, repairs, etc) do not qualify as tax deductions.

Homeownership Helps Build Wealth
In summary, homeownership helps families build long-term wealth. In fact, KeepingCurrentMatters.com postulates that homeowners' family wealth will be 45x that of renters' by the end of 2016. If you are looking for a way to invest in your future, buying a home could be a great financial move.

Let First Bank Of The Lake Be Your Local Financial Resource!
As the best bank at the Lake of the Ozarks, we place our customers' financial needs at the top of our priority lists. Whether you're looking for checking accounts, savings accounts in Osage Beach MO, retirement accounts, or other investment accounts at the Lake of the Ozarks, we are sure to have something that meets your needs. Visit our website to learn more!

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Osage Beach, MO 65065

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