Wednesday, June 03, 2015

12 Smart Reasons to Become a Homeowner






June is National Home Ownership Month. One of the happiest times in my life was when I became a homeowner.  I feel a great sense of accomplishment and have been blessed to remain in my home despite the economic woes of the country and many other homeowners because I bought a home for much less than the amount I was approved for.

The best time to buy a home is during with fall and winter season when demand is low. However, many Americans purchase homes during June, the start of the summer season. Owning a home is one of the best ways to generate wealth.  However, owning a home requires financial discipline and sacrifice.  Create a budget or spending plan to help manage your finances to make sure you can stay in your home for as long as you like and to help reduce the chances of filing for bankruptcy or foreclosure. 

Your monthly mortgage payment should be no more than 32-38% of your total monthly income.  This will ensure that you have extra cash to pay for unexpected expenses and will reduce the chances of using a credit card and going into debt. Here are twelve smart reasons to become a homeowner:


  1. Credit. Increases your credit score when you make payments on time and proves that you are a responsible spender.
  2. Own. You become a proud owner. You have the ability to do anything you want to your home unless you live in a HOA or a historic district.
  3. Inexpensive. Mortgages are cheap. You can get a 30 year fixed loan for approximately 3.95%. These are historic lows that you should take advantage of.
  4. Taxes. Provides a tax write-off. You can write-off your interest payments, points, and real estate property taxes.
  5. Financial security. Homeownership increases your net worth due to appreciation which helps build equity.
  6. Peace of mind. You don’t have to worry about increases in your monthly mortgage payment unless there is an increase in your taxes or homeowners insurance premium. However, if you pay your taxes and homeowners insurance premium on your own your monthly mortgage payment will remain the same.
  7. Invested. Becoming a homeowner means you are vested and have a stake in your neighborhood. You will become more concerned about your neighborhood and work with your neighbors to make improvements.
  8. Knowledge. You will gain knowledge about the home buying process, realtors, lenders, interest rates, home prices, and sales trends.
  9. Protection. Buying a home offers some inflation protection. Studies show that over the long-term housing tends to beat inflation by a few percentage points a year.
  10. Risk capital. If the economy grows (increases) that will result in a domino effect and real estate prices will increase.
  11. Responsibility. Helps to provide more financial responsibility in other parts of your life such as planning for retirement, paying for college, and reducing spending.
  12. Save. It forces you to save your money to ensure you are able to pay that monthly mortgage payment and helps you become more disciplined with saving and spending.

1 comment:

Joshua Duncan said...

This blog has allowed me to look at my finances again with a bit more clarity thank you for sharing this valuable piece of information it has been such a beneficial piece of information to my wife and I. Keep up all the hard work that has gone into writing this. I will pass it on to family and friends.

Joshua Duncan @ Focus Insurance Atlanta