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  • Writer's pictureDave Dail

Purchasing a home is incredibly important to your financial well being. Coming up with a down payment and getting your debt to income ratio is worth the work in order to become a homeowner.

Read 5 reasons to become a homeowner in 2022 below:

1. A Home Increases in Value Over Time

It is very rare that a home decreases in value.

Even after the crash of 2008 when home values in major cities plummeted, their evaluations increased.

Today those values have recovered the value before the crash and surpassed what they were in 2008.

If you purchased a home in the last 10 years, there is no doubt that your home is now worth more than the price you purchased it at.

The home could be old, small, with wood paneling and yellow toilets, but it is still worth more today.

2. A Home is an Asset

Because the home value increases overtime, your home is an asset.

By simply owning it, you make money.

If the value of your home increases $12,000 in a year, and you sell it, you will make that extra money from the increase in valuation.

What did you do during that time? Nothing except paying for the mortgage.

Assets make you money simply by owning them.

Either way you need a place to live and have to pay monthly for that. It can be in rent to someone else, or it can be to the bank, allowing you to build an asset.

3. Your Mortgage is a Fixed Payment A fixed mortgage is exactly that, fixed. It doesn’t change.

On a conventional 30 year fixed loan, the payment price that you pay on that home does not change. The taxes and insurances may increase but the mortgage payment will not change. (Note that I am discussing a 30 yr fixed loan- other loans do adjust)

Rent can fluctuate and most likely will increase overtime. That is not something that you as the renter have any control over.

4. You Can Make Money Off Your Home

One of the best ways to generate income is through renting out a home you own. You can rent it out entirely, or live in it and have roommates pay you rent. That rent that they pay you, goes to your mortgage and escrow. In an ideal situation the rent is priced properly so that it covers all expenses that come with owning a house- including some money set aside for maintenance and upkeep.

This allows you to build an asset (see #2) without using your money!

Your home that you’re not paying for increases in value over time (see #1).

5. Interest Rates Are Low for Now…

Interest rates are at an all time low and are starting to rise. We know they are going up.

A lower interest rate allows you to have an affordable payment for a larger loan.

Now is the time to take advantage of the low interest rates.

Here is an example of the difference:

$240,000 purchase price 30 yr fixed -3% interest rate = payment of $1012

$240,000 purchase price 30 yr fixed -5% interest rate = payment of $1363

Just two percentage points can alter a payment by a couple hundred dollars.

And the higher the price of the home (which most in this area are higher) the larger the difference in payments.

Currently interest rates are above the 3% rate noted above.

What Do You Need to Do To Get On the Home Buying Path?

Check next week’s blog post for more information on what you need to do to get ready to

purchase a home.

Or reach out to me! I enjoy talking to people about the home buying process and can answ

er specific questions about your situation.


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