Home ownership offers many advantages, the mortgage is your first step
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Most folks believe that fulfilling the American dream means owning a home.
We instinctively feel more permanent, grounded and stable through home ownership. We share a sense of purpose with our neighbors, friends, family, school and church or temple. In addition to these emotional, social or psychological factors, home ownership offers many financial advantages as well. Typically, the value of a house appreciates over time. As it increases in value the your net worth increases as well.
When you finance your home with a mortgage, you'll typically make monthly payments. A percentage of that payment goes toward paying off the principal on the loan. Over time you build up equity in the property that you can borrow against or convert into cash by selling the house.
The interest you pay as part of the monthly home mortgage payments, as well as the property taxes you pay, are tax deductible, depending on your tax bracket. This can mean substantial savings on your federal income taxes.
Do consult your tax advisor regarding the benefits for your personal federal income taxes.
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