Family Wealth – The Benefit of Homeownership

Owning a home is financially the smartest decision you can make in your life. Some see it as a “savings plan”. When you pay a rent payment you are ultimately losing your money. You pay for a one month usage of the property and are realistically paying the homeowner’s mortgage. There is no benefit for your future. On the contrary, when you pay your mortgage you are accumulating savings in the form of your home equity. Equity is the difference between what your home can sell for and what you owe on your mortgage. Every mortgage payment increases your home equity. That is especially the case if the property value appreciates.

CoreLogic recently performed a study that shows that homeowners currently have high equity in their homes.

“The CoreLogic Home Price Index recorded a quickening of home price gains during the fourth quarter of 2019, helping to boost home equity wealth. The average family with a mortgage had a $7,300 gain in home equity during the past year, and a total of $177,000 in home equity wealth.”

A home is usually the largest asset a family has. The higher the home equity the higher the net worth of the family.

Bottom Line

The pandemic has caused home price growth to take a pause. Once a vaccine becomes available majority of experts state that homes will begin to appreciate again. Don’t spend your hard earned money on someone else’s mortgage. Grow your family’s wealth and become a homeowner today.

If you are thinking about buying a home but not sure even where to begin, contact us. Prestige Waterfront Realty has the expertise to guide you through the process. Call us at 954-830-7000 or email Tegov@AskPWR.com

If you are interested to see if you qualify for a mortgage, contact Mortgage Broker Iliana Tegov at Voget Financial Services at 954-614-9000 or email iliana@vogetfinancial.com.