There are many advantages, but the most appealing for homeowners is the fact you own it. There are other benefits including potential tax savings, when mortgage interest paid on a home loan is tax deductible, as is the local property tax. You may also build up equity as your property appreciates in price over time. Equity can be used to help put children through college, purchase a second home, or make home improvements. And, if you get a fixed-rate home mortgage loan, you may be able to spend or invest wisely knowing your monthly mortgage payment, unlike rent, will not change substantially.

Purchase a lower-cost home now, or save to buy a bigger home, later? It can take a long time to save for your perfect dream home. Meanwhile, the market has some of the most favorable mortgage interest rates in years. Low rates make housing more affordable, which is why so many buyers are considering purchasing a new home. If you buy a starter home today, you can potentially begin to build value leading to the purchase of a larger, or more desirable, trade-up home in the future.