• You build equity. Some of each monthly mortgage payment goes toward the mortgage’s interest. Other portions may go toward property taxes to the city. The remainder pays down the mortgage principal. Every dollar put toward your mortgage’s principal represents a dollar of equity (the difference between the current fair market value of a property and the amount of debt owed against it). Further, the property should appreciate in value each year, adding to equity (what the house could be sold for versus what is owed on it). • Improvements increase your home’s value. A homeowner can also increase a home’s value through home improvements, thus both making your home more comfortable and enjoyable while growing its mortgage- to-value (LTV) ratio. For instance, adding a bathroom or finishing a basement substantially increases the property’s functionality and curb appeal, while potentially boosting its value. • Current mortgage rates are relatively low. Interest rates rise and fall through the years. Several years ago, interest rates were higher, and it was more expensive to obtain a mortgage. Since these costs have been reduced, it is now easier and less expensive to own a house. • Ownership rights and creative freedom. Your decorating and home improvement choices are just that — yours, provided they don’t break building codes or violate homeowners’ association rules. You can paint walls any which way, add fixtures, update or finish your basement, or build a patio or deck. Changing your environment to suit your whims is a freeing aspect of homeownership. • A sense of belonging to the community. Homeowners
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