Tempe Mortgage Broker Offers Tips on Buying Your First Home

Traditionally, the most common approach to prudent financial planning has focused on owning a home. Still, with changing attitudes and lifestyle goals, the millennials are divided on the wisdom of this approach. Though real estate decisions are important and can have a financial impact for years to come, one needs to evaluate each decision individually carefully. Let’s be clear that buying a first home is not the same as buying your dream home or a shortcut to riches; it’s just the beginning, but it can lay the foundation for future success.

The Benefits of Buying a Home, from the Financial Perspective

The primary benefit of homeownership is, of course, the tax deductions. Under U.S. tax law, homeowners can deduct their mortgage interest and property taxes from their taxable income. A married couple in a 25 percent tax bracket who purchased a $500,000 home and paid $5,000 a year in mortgage interest taxes and $9,000 in property taxes could save roughly $4,300 in taxes each year.

The second greatest benefit of homeownership is the equity buildup. When you put money down on a house, you’re usually not just paying for the house’s current value. Rather, you’re investing in the house’s potential to gain value in the future. If you decide to stay in the house for a certain period, that appreciation can be yours to keep.

The Security of Having Your Own Home

Homeownership is often viewed as a safe investment due to the stability of monthly payments and the home’s increasing value over time. In addition, renting a property is typically an open-ended arrangement, which means there’s no guarantee of how long you’ll be able to stay. You could be asked to leave with very little notice.

Owning a home can also be a great way to increase the value of your personal possessions. Even if your home takes a bit of a hit in the market, you’re never at risk of losing everything in a fire or other natural disaster by owning your own home.

Using a Mortgage to Save for Retirement

For many mid- to late-twenties Americans, saving for retirement seems daunting. It doesn’t help that the generation is faced with substantial college debt and the prospect of entering the workforce during an era of record unemployment.

But a home mortgage can be an effective way to start building retirement savings. The amount you borrow may seem like a lot now, but you’ve essentially turned it into a retirement fund after you pay the loan off.

How a Home Can Become an Inflation Hedge

Though the housing market is not immune from economic cycles, it does provide a hedge against inflation. As the value of your home appreciates, your monthly payments will likely stay the same. In other words, your income needs will remain constant when other expenses are rising. A well-planned strategy can help you stay on top of your monthly payments even as your finances change.

A Top Rated Mortgage Broker in Tempe AZ: Mortgages By Misty

Whether to buy a home will likely be one of the most important financial decisions a millennial will make. Before making any of these decisions, it is important to weigh all of the pros and cons and consider your lifestyle and your long-term financial goals.

If you are shopping for a home in Tempe or anywhere in Maricopa County or the state of Arizona, your journey to homeownership starts with choosing a suitable home loan.

At Mortgages by Misty, they match clients with a flexible mortgage, based on their financial situation and plans for your future. A beautiful neighborhood, sunny weather, excellent schools, and a booming job market—living in Tempe, AZ, brings you all of these benefits, plus access to the entire Phoenix metropolitan area. If you want to buy a home in Tempe, Mortgages By Misty can help you choose the right loan product. Call them at (480) 618-5358 to set up a consultation today!