- Home prices tend to rise over time, so a home is one of the best investments you can make.
- You’ll pay less tax.
You can deduct the interest you pay on your mortgage from your total income. The value in this tax break depends on factors like your personal tax bracket, the size of your mortgage, the rate of interest you pay on it and how long you’ve held the mortgage. As a rule, the newer the mortgage, the greater the amount of interest you pay each month and the bigger the tax break.
- You’ll be buying a piece of real property rather than putting money in to your Landlord’s pocket each month.
The real cost of renting is generally higher than the monthly payment.
- Interest rates are still very low historically.
This makes it inexpensive to have a mortgage. The lower the interest rate, the less you actually pay for your house and the faster you pay the mortgage off.
- You’ll be able to use the equity in your home for low cost loans for other purposes.
You can access the paid up equity you accumulate in your home in the form of a home equity loan. Because they are secured, home equity loans generally carry a lower interest rate than other types of consumer loans, such as auto loans. The interest on them is generally tax deductible, as well.