There are numerous reasons that drive people to purchase homes and a recent Federal Reserve survey may provide one of the greatest. In the Survey of Consumer Finances the study revealed a homeowners median net worth of $231,400 compared to a renter with just $5,200 in net worth.
One key component to this wealth accumulation can be referred to as ‘forced savings’ with every mortgage payment raising your net worth by increasing the equity in your home. A common misconception is that owning a home carries a higher monthly obligation, which can be true at times. However when factoring in the equity gain and tax benefits of owning a home, the outcome of ownership can be quite surprising.
There are numerous factors to consider when thinking about purchasing a home and one myth we would like to bust is that it does not require a 20% down payment. There are numerous low down payment options which even allow for the money to be gifted, or state agencies that provide assistance to increase affordability.
If you are thinking about becoming a homeowner, give us a call to get prequalified and to break any other myths keeping you from moving forward with the American dream.