If you’ve been thinking about buying a home, there may never be a better time than in June, which is recognized as National Homeownership Month. The month-long celebration recognizes the value of owning a home—what it brings to families, communities, and neighborhoods across America. It also recognizes the joys of being a homeowner and how to help encourage others to achieve the same.
The History of Homeownership
During the 1800s owning a home was challenging. Mortgages only became common after the National Bank Act helped to make loans public. The U.S. government later formed the Home Owners’ Loan Corporation in 1933, the Federal Housing Administration in 1934, and the Federal National Mortgage Association (Fannie Mae) in 1938. To help expand the dream of homeownership further, the G.I. Bill was passed and the Fair Housing Act was signed.
Although the housing market is experiencing challenges today, there are still 3 key benefits of owning a home:
1) Financial stability. In some cases, mortgage payments may be less expensive than rental rates. This is because inflation affects the price of rent. But when you’re a homeowner with a fixed-rate mortgage, you have a set monthly mortgage payment that will not change, regardless of inflation.
2) You build equity. First-time home buyers can strengthen their financial portfolio. Monthly mortgage payments steadily accumulate equity, while monthly rent payments to your landlord hold no return. Some of the ways you can increase equity include: paying toward your principal, refinancing to a 15-year loan, or tackling home improvement projects that increase the home’s value.
3) Sense of community. Buying a home allows you to make long-lasting relationships with neighbors and other people in your community. Homeownership removes the possibility of a premature move which would otherwise prevent the formation of those close relationships with friends, teachers, and local businesses.
If you are actively looking to buy or just starting to think about it, our friendly and knowledgeable mortgage team is standing by to provide honest and no-obligation advice. Give us a call at (855) 852-4748 or click here to request a mortgage check-up.
Are you excited to buy and move into your first home? Do you want to remove as much stress and frustration as possible? Don’t miss this GreenPath webinar on A Guide to Successful Ownership, June 15 @ 3:00 pm EST. Join HUD certified housing counselors to learn about the steps to become a homeowner and how to maintain the home once you have a place that’s all your own. Registration is free.
