Five Often Overlooked Benefits of Homeownership
June is National Homeownership Month, and today we’d like to share some of the lesser known benefits of owning a home. Most buyers know that their home will increase in value, and in many situations, create a forced savings. In addition, a house payment is often less than renting a similar size space. Beyond the financial items, let’s talk about the benefits of homeownership.
1. Sense of Community
As a homeowner, you have a bigger stake in what’s going on in the community. You’re more likely to vote or otherwise be involved in local issues. Areas with high homeownership rates have higher volunteerism and lower crime rates. When you own rather than rent, you’re more invested in what’s going on around you and work to make it a good place to be.
2. Future for Your Kids
In a study by the Federal Reserve Bank of Boston, kids of homeowners do better in school, including higher test scores. Once they’re out of school, they have a higher average income than children who grew up in rental properties.
3. Better Physical and Mental Health
All things being equal, a survey by the National Association of Realtors found that homeowners responded more positively to questions about their physical and mental health than renters. This mirrors research by Habitat for Humanity where they found that once they deeded a home to someone, the owners reported having higher self-esteem and a more positive mindset.
4. Ability to Make Your Space Your Home
Because you own the property, you don’t have to ask to paint a wall or even knock it down. You have the right to make the space just as you want it. This gives a homeowner the feeling of more freedom than a renter, likely another contributing factor to better mental health.
When you rent, you risk being asked to leave at the end of your lease or having the rent raised on you. Homeownership provides a sense of security in that, as long as you make your payments, you control when you leave. If you have a fixed-rate mortgage, you won’t see the principal and interest portion of your payment increase. With a conventional loan, after you accumulate 20% equity, you can ask that your PMI (private mortgage insurance) be removed and see your payment go down! Rent almost always goes up year after year and never goes down.
If you’re ready to become a homeowner and wonder what sort of loan you qualify for, let Hamilton Group Funding help. We’re happy to discuss your options and guide you to the best mortgage for your needs and income. Contact one of our branches to get started today.