Financial benefitshome ownershipJulia Dagistanli December 6, 2020

 The Financial Benefits of Home Ownership

Mortgage rates have hit new record lows 11 times in 2020, according to The Mortgage Reports. If you are ready to buy, it’s a fantastic time to lock in.

And while a low mortgage interest rate is a great reason to start your home buying journey, there are multiple financial benefits to home ownership. “Owning a home is a great way to build your long-term wealth,” says Julia Daglistanli, a sales associate at ERA Justin Realty. “Instead of paying your landlord, you are paying toward your own investment.”

According to a report by Trulia, buying is cheaper than renting in 100 of the largest metro areas by an average of 37.4%. And while that alone may have you thinking about buying a home instead of signing another lease extension, there are many other reasons to buy versus renting.  

Here are four more reasons why owning a home makes financial sense:

Mortgage payments can be fixed while rents go up. $485.6 billion was spent on rents in the U.S. in 2017, representing an increase of over $4.9 billion from the year before. What’s more, rents have increased consistently over the last 20+ years.

Equity in your home can be a financial resource later. “The equity built in your home can be borrowed against in the form of a home equity loan or home equity line of credit,” Julia explains. “Simply put, a home equity loan is essentially a ‘second mortgage’ that uses your home as collateral as you borrow an exact amount of money.”

A mortgage can act as a forced savings account. Each month, your housing payments go toward owning your home instead of renting it; building your personal wealth and assets instead of someone else’s.


Overall, homeowners can enjoy greater wealth growth than renters. According to the latest data from the Federal Reserve, a homeowner’s net worth is 44.5 times greater than that of a renter ($231,400 vs. $5,200).


If you’re interested in learning more about how home ownership may benefit you,  call Julia or one of the other sales professionals at ERA Justin Realty at 201.939.7500.