While you may feel the pressure to buy a new home, it is still best to contemplate on your situation. If family and friends are urging you to purchase your first house, be sure that you are stable enough to keep up with the associated financial challenges. This goes along with being emotionally ready to settle down and own a home.
These are a few other reasons it makes sense to buy a home.
With renting, all your payment goes to the property owner and you get nothing in return. With homeownership, however, the payment you make decreases the mortgage balance, which then helps you build equity in the future. Equity refers to the difference between the property’s market value and the amount you owe to the lender. This part of the house’s value belongs to you.
Utah mortgage lenders note that having a secure and stable job is one good reason to buy a home. If you are sure to stay put in one location for at least five years, it is time to buy a home. It may not be a good idea, however, if your job requires traveling or moving to a new place every year. It is also important to avoid switching careers when applying for a home loan.
Tax Break on Mortgage Interest
In the first few years of paying your loan, most of the payment will go the interest rate. The good news is, you can deduct the loan’s interest from your income taxes. This is beneficial in reducing the total amount that you pay in taxes every year. Note, however, that you will only receive tax breaks if the deductions are itemized on the return. You can use an online calculator to know your tax savings.
There are many good reasons to buy a home, but only take the plunge when you are financially and emotionally ready. Be sure to think about how much house you can afford and how are you going to afford the payment, advised an expert from Econmortgage.com. Talking to a reliable lender may help you decide on the right amount and mortgage term suitable for your situation.