Your home will build equity

Rent payments just disappear into your landlord’s pocket. However, your monthly mortgage payment consistently contributes to your home’s equity, which acts as a personal savings account. This can add up to tens of thousands of dollars, which can go toward future financial goals like a child’s education or your retirement.

Save with tax-deductible interest and other deductible expenses

The U.S. government allows tax incentives that may make it possible for many homeowners to exceed the standard yearly deduction. The state that the home is located in may also offer the same benefits.

• A tax deduction for the yearly interest paid on primary or vacation homes.* This amount equals a big chunk of the total payments for the first several years.
• A tax deduction for the total amount of the yearly property tax bill.
• When refinancing to consolidate other debts, the interest on the home equity loan may be deductible.*

*Check with your accountant to verify what can be deducted in your geographic area

When you take into account the low fixed-rate mortgage programs and tax benefits that come with owning a home, you could be spending less on a mortgage payment than you are on rent.

Home payments are stable, while rental costs continue to rise

With a fixed-rate mortgage, your payments could be as low – or lower – than rental costs. And unlike rent, which can increase every year, your principal and interest payments will never rise.

You might be eligible for special lending programs

There is an array of loans designed to help you buy a home, including expanded debt-to-income requirement programs, low down payment loans, mortgage credit certificate programs, and first time homebuyer programs.

Buy vs. Rent Comparison
The chart below shows a cost comparison for a renter and a homeowner over a seven year period.