June is National Homeownership Month. A time to talk about the benefits of becoming a homeowner and show that the American dream of buying a home is achievable. There have been conversations about if owning a home is a worthy investment (we will get to this in a minute), but there are many other up sides you can expect to see once you begin this journey. You're Building Equity Unlike paying rent, making your monthly mortgage payment allows your money to go somewhere in the form of equity. This is the “dollar” value of your home that actually belongs to you. When you take away the amount you owe on your loan from the total value of your house, the number that’s left over is your home’s equity. As you pay on your loan and your home increases in value, you’re gaining more equity. The great thing about building equity is that you are able to tap into it if you need to. You can borrow against your home’s equity to meet financial needs (education, medical expenses, etc.) or pay for upcoming home improvement projects. It is a Good Investment Even though purchasing a home is very expensive, it provides a much better return on investment than other types of large purchase such as a car. While a car’s value dropped as soon as it leaves the lot, a home’s value will actually go up depending on the market’s conditions. Stable Monthly Payments If you’re currently renting, the amount you pay each month has the possibility to increase every time you renew your lease. When you pay on a fixed-rate mortgage, the amount you pay for principal and interest stays the same for the life of the loan. The only parts you can see change are property taxes and homeowner’s insurance, but that typically doesn’t happen as often as rent prices increasing. Build a Space You Want Being a homeowner gives you the freedom to build the space that makes your house into a home without having to get approval from a landlord. You can own pets (make sure to check with your Home Owner’s Association if you have one), paint rooms whatever color you like, and make changes to floors and carpeting. Be sure to follow us on social media as for more content on the benefits and stats that surround homeownership and the loan process.