Buying a Home
BENEFITS OF HOMEOWNERSHIP
Homeownership provides stability in many ways. It makes a lot of sense financially (in the long run) and comes with many added benefits. Evergreen Mortgage Solutions will help you identify the benefits of owning your own home.
BUYING IS CHEAPER
In the first few years, it may be cheaper to rent. But as the interest portion of your mortgage payment decreases, the interest will eventually be lower than the rent you would have been paying. But more importantly, you’re not throwing away all that money on rent. You must live someplace, so instead of paying off your landlord’s home or building, pay off your own!
SAVINGS PLAN
Paying your mortgage every month and reducing the principal is like a forced savings plan. Each month you are building up more valuable equity in your home. In a sense, you are being forced to save - and that’s a good thing.
BUILD WEALTH OVERTIME
Homeownership can be a very savvy financial move - but only if people buy homes they can afford.
BUILD EQUITY
Your equity in your home is the amount of money you can sell it for minus what you still owe. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe. That reduction of your mortgage every month increases your equity. That is especially true now with the elimination of risky mortgages like negative amortized and interest-only loans - thanks to the new “Qualified Mortgage” rules.
MORTGAGE TAX DEDUCTION
Mortgage deduction: The tax code allows homeowners to deduct the mortgage interest from their tax obligations. This can be a huge deduction since interest payments are often the largest component of your mortgage payment in the early years of owning a home.
*Consult a tax professional for more information.
TAX DEDUCTIONS ON HOME EQUITY LINES
In addition to your mortgage interest, you can deduct interest paid on a home equity loan (or line of credit). You can transfer your credit card debts to your home equity loan, pay a lower interest rate, and get a deduction on the interest as well.
*Consult a tax professional for more information.
CAPITAL GAINS EXCLUSION
If you buy a home to live in as your primary residence for more than two years, then you qualify for this deduction. When you sell, you can keep profits up to $250,000 if you are single, or $500,000 if you are married, and not owe any capital gains taxes.​​​
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