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Why Buying a Home is a Great Decision For Your Financial Future

Buying a home is a great decision for your financial future because it can save you thousands of dollars in down payments and interest payments over the course of your lifetime.

Buying a home is one of the smartest financial decisions you can make. Not only will it save you thousands of dollars in down payments and interest payments over time, but it can also provide you with long-term stability and security. In fact, according to real estate website Zillow, buying a home has the potential to save you an average of $20,000 over the course of a 30-year mortgage term. That’s plenty of money to put away for your children’s college fund or your retirement account! And don’t forget: homes typically appreciate in value over time, so you could wind up making even more money on your purchase. So if you’re thinking about buying a home someday – now is the time to start planning!

The down payment:

When it comes to buying a home, one of the most important expenses is the down payment. Here’s what you need to know about making a down payment and how much you should expect to spend.

Down payments are typically required when buying a home, but there is no universal definition of what constitutes a down payment. Typically, a down payment consists of at least 5% of the purchase price, with some buyers requiring as much as 20%. The amount you’re required to contribute will vary depending on your credit history and the type of mortgage you choose.

If you can’t afford to put down all or part of the purchase price, don’t despair. There are several other ways to reduce your financial burden when purchasing a home. One option is to use a home equity loan or line of credit.

The interest rate:

As we move closer to the end of 2017, interest rates continue to be a hot topic. The Federal Reserve has been raising rates since late 2016 in an effort to stimulate the economy and keep inflation in check. While this policy has had some success, it is not without its consequences.

For borrowers, the interest rate is one of the most important factors when deciding whether or not to take out a loan. If you have a variable rate loan, for example, your monthly payment will go up if the Fed raises interest rates.

On the other hand, if you have a fixed-rate loan, your payment won’t change regardless of what the Fed does with interest rates. This is good news for those who want stability in their monthly payments, but bad news for those who want to lock in a low rate.

Closing costs:

Closing costs can be a major expense for home buyers.

Tax benefits:

Tax benefits can be a great way to save money on your taxes. There are many different tax benefits available, so it is important to research which ones could benefit you the most. Some common tax benefits include: exclusions from taxable income, deductions, and credits. Each of these can help you reduce the amount of taxes you owe.

Some tax benefits are specific to certain types of taxpayers. For example, investors may benefit from items such as the capital gains exclusion and the qualified dividend deduction. Single parents may find significant tax savings through items such as the child tax credit and Earned Income Tax Credit.

The best way to maximize your potential for tax savings is to understand all of your options. Speak with an accountant or tax preparer to figure out which benefits would work best for you and your financial situation.

Homeownership:

A recent study by the National Association of Realtors found that home ownership is one of the most important factors in a person’s overall well-being. Owning a home gives people a sense of control and security, as well as increased happiness and better mental health. Additionally, owning a home can help people save money on their monthly mortgage payments. There are many benefits to homeownership, so it is important for everyone to learn about this important financial decision.

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