Homeownership - Utah Home Loans

By: Robert A. Hulme - Realtor - Loan Officer

While some people choose the flexibility of renting and being free of maintenance, many others choose ownership for other reasons. The pride of being a homeowner is a very important reason for purchasing a home, but more people are interested in homeownership for purely economic reasons.

Building Equity

One of the main economic reasons is that of building equity. Especially in today's market, with home values being deflated as they are, many buyers can pick up a home at a very reasonable price. With interest rates being at all-time lows, you can make a healthy payment and have most go to the principal of the home loan, thus creating more equity.

Tax Deduction

Another good reason for purchasing a home is the ability to deduct your mortgage interest and property taxes from your Federal Income Tax return. This can result in significant tax savings, especially in the early years of a mortgage when interest payments are higher.

Payment Stability

Unlike renting where payments can increase over the years, a fixed-rate mortgage payment will remain the same for the term of your loan. During a time of increasing foreclosures like we have today, the demand for rentals in much greater, thus creating inflated rental pricing.