Given the recent upheaval in the property market, many prospective homeowners are quite jittery about buying homes. A lack of substantial information about the mortgage process contributes to the confusion.
Unfortunately, these fears are largely unfounded. A concrete understanding of the home buying process helps people make the correct decision before it is too late. Simply put, by talking to a mortgage broker in Salt Lake City, residents can successfully get on with their home ownership dreams.
Here are reasons owning a home this year can be a win-win situation:
A high net worth
Equity building is probably the best reason to own a home. Every time you are making a mortgage payment, you are increasing your net worth. Renting only increases the property owner’s equity instead of yours. Forbes explains that proprietors are worth 45 times as much as their tenants. Getting an early start on home ownership increases the chances of happy retirement and reduces your financial burden when you reach your senior years.
Rental payments are not tax deductible, but mortgage payments can be. While servicing your mortgage, you can deduct the full interest amount from your state and federal tax income. This provides significant savings every year for the life of the mortgage loan. You also get a tax break on capital gains when you sell the property.
Low mortgage rates
With interest rates on 30-year mortgage hitting a historic low of 4 percent, the time is ripe for home ownership. As it is a borrower’s market, lenders are willing to indulge qualified individuals on the payment terms. Having a perfect credit score, putting a sizeable down payment, or purchasing points all make the mortgage process easy and manageable.
Control of the property
With full home ownership, you can customize your living space to your liking — of course, adhering to the building code. You do not get this satisfaction from a rental property, as the owner may not allow remodeling or other improvement projects.
Home ownership not only secures your future, but also increases your equity. This puts more money in your pockets than you will ever know.