What’s so special about owning a home? For modern day parents, being a homeowner opens dozens of doors to financial freedom and security. Not only is a house the largest investment most ever make in their lives, but it gives owners a chance to utilize built-up equity and gain access to low-interest loans for any purpose they have in mind. Likewise, the government offers several tax breaks to people who pay mortgages on the property where they reside.
Whether you want cash to start a home-based company, need higher credit scores, or save a bundle at tax time, consider getting out of a rented property and moving into a house as soon as you qualify for a mortgage loan. Couples who have one or more children soon discover that they need more space. It’s an age-old dilemma for young families and one that is still part of being a homeowner with children. It’s important for moms and dads to understand why home ownership is such a priority in modern society. Of course, even a small house represents the most valuable asset a typical homeowner possesses. Consider the following reasons why owning a house is a priority for millions of working adults.
Is Single Largest Personal Investment
There are so many investment tips for the over 30s and it can be hard to decipher what you should, and should not prioritize. But for nearly every working person, their house is the most valuable asset they own. Not only does its potential value increase personal wealth, but paying off a house is one way to increase net worth and gain long-term financial stability.
Can Pay for a Child’s College
There are dozens of benefits that come with being a homeowner, but one of the most pertinent ones for parents of college-aged children is the ability to use built-up equity to pay for tuition and other school-related expenses. Dads and moms who own their homes can use a home equity line of credit (HELOC) to gain access to money they can use for any purpose they wish. HELOCs unlock the financial power of homeownership in a unique way. That’s good to know since higher education costs have risen substantially in the past decade.
Not only do the arrangements offer owners low-interest lines of credit, but the amounts represent almost the entire amount of equity the owners have attained. The beauty of a HELOC is that you can’t really be turned down for the loan. That equity is yours, so gaining access to it is a matter of filling out an application form and deciding how much of the funds you wish to use. It’s worthwhile to know that homeowners use HELOC proceeds for varying purposes, including college expenses, vacations, unexpected medical bills, starting a new business, investing in real estate, etc.
Helps Boost Credit Scores
Being a homeowner means having the potential for a relatively high credit score, provided the owner keeps up with mortgage payments. Lending institutions and rating bureaus view ownership as a safety valve when they lend money. If a borrower defaults on a loan agreement, then the lender can sue for compensation based on the value of the property. Loans that are secured by homes are easier to get and tend to come with lower interest rates.