As interest rates are starting to come down, it’s a great time to be looking to purchase your first home. Consider these top ten reasons why being a first-time home buyer is great.
Build Equity
Building equity means investing in something you own rather than paying money each month on rent without owning the property. When you make monthly mortgage payments on the property you own, you own more and more each month. In the future when you sell your first home, you’ll have money left over after paying off the mortgage that can be used as a down payment for your next home. Your money works for you when you pay a mortgage rather than rent.
More Privacy
A home is more private than renting an apartment and sharing a bedroom wall with a neighbor you don’t know
Find A Smaller Starter Home
Begin small. A home with less square footage usually means a smaller mortgage and smaller utility bills. When it’s time to sell that first home, you can use the money you get from the sale to buy a larger or higher-priced home,
Establish Credit
Getting a mortgage loan at a young age can help you establish a solid credit history, which means a good credit score and ample financial opportunities down the road.
A First Home Is Not A Forever Home
According to the United States Census Bureau, the average person will move as many as 11.7 times. So don’t stress to find the perfect home the first time around. Look for a home that is best for now.
Remodel As You Go
Make your house a home. Freshen the landscape to add curb appeal. Swap out the windows for more energy-efficient versions. Add a deck to expand your outdoor living space. Projects like these will increase property value while personalizing your home.
The Yard
Imagine the possibilities. Space for the dog to run. Your own vegetable or flower garden. Naps outside in the hammock. Room for a firepit. A spot for the family snowman.
Tax Incentives
Homeownership has several potential tax benefits that might lower your tax burden and increase your annual refund.
Feeling Of Achievement
Homeownership is an accomplishment that is worth the time and energy required to plan and succeed.
You Can Refinance Later
Interest rates are constantly changing. If interest rates go down in the future, you can swap your higher rate for something more favorable. Sometimes, you can keep your monthly payment the same but dramatically reduce the years left on your mortgage. Don’t feel stuck with today’s interest rate for the next 30 years.
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