The Financial Benefits of Homeownership
We're a little over a quarter into 2010 and if you're one of the many people that had a New Year's resolution to save money, track your spending or get your finances in order, there is an unlikely source that you may not have considered: a mortgage. Despite some perceptions, homeownership can have several benefits in a downturn market. These are the top reasons why taking on a mortgage can be beneficial to your pocketbook.
An Assortment of Options
Finding the home of your dreams and within your price tag used to be an exhaustive process, but now with such a high inventory of homes, the selection process has become much easier. The housing market currently favors buyers, providing you with several different homes to choose from.
Optimal Housing Affordability
Homes have been dramatically reduced in price, making it an opportune time to purchase. Most of the homes are readily available, so move in time would be as quick as you need it to be. However, the housing market is expected to begin its upturn within the next few months, so now is the time to make your move.
Equity and Tax Deductions
The real cost of renting is much higher than making a monthly mortgage payment. Even if your home price does not appreciate over time, you'll still be able to sell it and get some of your invested money back. Furthermore, when you own your own home, you have the benefit of deducting your mortgage's interest on your taxes. You may even be able to receive tax deductions depending on what energy efficient improvements you make to the property.
Consider a Refi
If you haven't already, now is the time to lock in these historically low rates by refinancing your mortgage. Depending on how much you currently owe on your loan, your refinance could save hundreds of dollars on your monthly mortgage payments, and may allow you to pay off your mortgage much quicker than you originally thought.
There's Little Time Left
While the Fed has seen some progress in the economy, they still have no intention of raising rates for a while. With rates continuing to stay low for an extended period, home buyers will still get a chance to lock in low rates for a couple of months longer. There's no telling exactly when interest rates will begin to climb, but there is no better time to ensure you get a low rate.