When someone wants to buy a home for the first time, it can be a little scary. Just remember that the benefits are much bigger than the risks.
The benefits of owning a home outweigh the risks.
Having a home is good in many ways. There are, of course, the usual problems to solve. First, people don't want to put that much money into it; they'd rather rent.
Also, they don't want to go through the long process of buying a home and looking for the right one. Then, they don't want to have to get a mortgage and take on debt to buy a house. Even though these are definitely drawbacks, the fact is that owning a home has so many major benefits that going through these steps is well worth it.
Equity is the best thing about owning a home. Equity is how much the home is worth. When you get a mortgage on a home, the down payment you made is the first equity you have in the home. As you make more payments, your share of the home's equity goes up (since the lender owns the rest of the equity). But it's also important to remember that equity goes up when the home's value goes up. This equity is yours alone; the lender's equity does not go up. Because of this, many people in California are sitting on gold mines.
This equity can be used to get home equity loans and home equity lines of credit, which can be very helpful. These are loans with low interest rates, and the home is used as security. Equity gives you access to many new and valuable opportunities. This is just one reason why owning a home is one of the best things you can do.
The tax savings are also a plus. Every dollar of interest paid on a mortgage can be written off on your taxes. This can be a very big amount, especially early on when the interest is high, and it can save you a lot of money in taxes.
It all comes down to the fact that you own a home, though. You're proud of the fact that that house is yours. One of the most important things you will ever do is buy a home. Don't pass it up, and if you don't have to, don't choose to rent. There are too many good reasons to own a home to not do it.
