Benefits to Owning Your Own Home

Owning a home may or may not be right for you depending on your circumstances and the area in which you live.

If you decide it is right for you, shop for a loan that suits your needs by talking to an experienced Real Estate Agent.

Everyone's situation is different—owning a home may or may not be right for you. Many people have different needs in different parts of the country. It's up to you to gauge what your needs and financial abilities are.

When you're looking for a home, there are several things you should consider, especially if you're a first-time home buyer. With renting, you have no responsibility in terms of maintaining the home—it's the landlord's duty to take care of lawn care, snow removal, and repairs. Renting may also be good if you plan on moving within a year or if you are in an area, such as New York or California, where housing space is at a premium and can be very expensive.

Financial and Tax Benefits

However, owning has great financial and tax benefits—when you pay interest on a mortgage, that interest is usually tax-deductible*. If you pay points on your loan to reduce your interest rate on your home purchase, that amount is also tax-deductible* for that year. Plus, the more principal you pay, the more equity , or ownership, you have in the home, whereas no matter how much you pay toward rent, someone else always has ownership of your home.

How to Decide

In order to decide whether renting or owning is better for you, you need to answer some questions:

	How much can I afford to pay monthly for a mortgage?
	Will I have money left over to pay for any needed repairs or to buy necessities such as furniture? What about other expenses such as heat, water, electricity, phone, etc.?
	How much will I need for closing costs to close my loan?
	Can I afford a down payment ? (Don't forget that it's possible to get a mortgage with no down payment.)

As with shopping around for the right home, it's important to shop around for the right loan. Do your research; ask friends and family members for referrals; go online. Remember, everyone is different, so it's up to you to decide whether owning a home is right for your individual financial situation.

*Please consult your tax advisor