Here's How...
Most of us can quickly come up with a long list of reasons for owning a home, but this one benefit should be at the top of everyones list.
Creating wealth is, by far, one of the most rewarding opportunities available to every homeowner as they build equity for the future.
Amortization Builds Equity
When a mortgage loan pays down or "amortizes", the equity in your home builds up as an increasing portion of each monthly payment goes toward paying down the principal balance of your home loan.
When paying rent, the opportunity for this "automatic buildup of equity" doesn't exist.
Tax savings are available to homeowners, in most cases, through the mortgage interest tax deduction. Use these savings to pay down the mortgage balance even further.
Tax Savings Will Accelerate the Equity Build Up In Your Home
Over time, with only modest home value appreciation, plus a combination of mortgage loan amortization and savings from the mortgage interest income tax deduction, the potential to build substantial wealth as a homeowner is an opportunity that is missed when you are renting a home.
Understanding The Effect Home Financing Has On Your Future Wealth
When financed correctly, over time your home can provide you with a great source of wealth. For those who understand the process, the benefits can be greatly increased and achieved with a much better certainty.
Prior to beginning your search for a home, you should know exactly what loan options are available, including types of loans, monthly payments, down payment and amount you can borrow.
Qualify For a Home Mortgage Loan Before Searching For A Home
Did you know that most homebuyers have little, if any, knowledge of what the mortgage process entails before they begin?
Are you familiar with the mortgage process?
When you apply for a home mortgage, every detail of your financial, credit, banking, housing, income and employment history will be analyzed, questioned and under review by a mortgage loan underwriter.
Are you concerned with how your financial "picture" will be viewed by the lender? Are you wondering if it's even possible for you to buy a home?
If so, you're not alone. The experience can create anxiety for even the most mortgage-savvy borrowers, but there are steps you can take to minimize this and fast-track the process.
The single largest barrier to homeownership...is the mortgage process.
Get practical mortgage know-how and insight to make better decisions, ask the right questions, and understand your home financing options, before, during and after, applying for a Mortgage Loan.
TheMortgageSavvy.com is an informational website, designed, written, owned and operated by Todd Grey, an NMLS (#1594405) licensed Mortgage Loan Officer. Todd Grey represents Equity Smart Home Loans, Inc. NMLS #856170 and CALBRE #01906808. The views and opinions expressed on TheMortgageSavvy.com are those of the authors.