{"id":5144,"date":"2023-10-04T05:30:00","date_gmt":"2023-10-04T10:30:00","guid":{"rendered":"https:\/\/nwiloanguy.com\/blog\/understanding-the-benefits-of-owning-your-first-home\/"},"modified":"2024-01-18T20:55:17","modified_gmt":"2024-01-19T02:55:17","slug":"understanding-the-benefits-of-owning-your-first-home","status":"publish","type":"post","link":"https:\/\/nwiloanguy.com\/blog\/understanding-the-benefits-of-owning-your-first-home\/","title":{"rendered":"Understanding the Benefits of Owning Your First Home"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" decoding=\"async\"  src=\"https:\/\/i0.wp.com\/files.keepingcurrentmatters.com\/content\/images\/20231003\/20231004-Understanding-the-benefits-of-owning-your-first-home.png?w=358&#038;ssl=1\" alt=\"Understanding the Benefits of Owning Your First Home Simplifying The Market\" loading=\"lazy\" style=\"margin-bottom: 5px;clear: both;max-width: 100%\" \/><\/p>\n<p>Are you considering buying your first <a href=\"https:\/\/www.simplifyingthemarket.com\/2023\/09\/21\/the-many-non-financial-benefits-of-homeownership\/?a=375140-ca8522ad04357da9549c08492a932f70\" rel=\"noopener noreferrer\" target=\"_blank\">home<\/a>? If so, it can be helpful to know what led other people to make that decision. According to a <a href=\"https:\/\/s22.q4cdn.com\/957797852\/files\/doc_news\/2023\/09\/9-14-23-first-time-homebuyers-undeterred-by-rising-mortgage-interest-rates.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">recent survey<\/a> of first-time homebuyers by <em>PulteGroup<\/em>:<\/p>\n<blockquote><p><em>\u201cWhen asked why they purchased their first home recently, the answer was simple: because they wanted to. <\/em><strong><em>Either the desire to stop renting or recognition that homeownership is a smart financial investment was the main motivator for 72% of respondents.<\/em><\/strong><em>\u201d<\/em><\/p><\/blockquote>\n<p>While that survey looked specifically at first-time homebuyers buying newly built homes, the same sentiment is true for just about anyone buying their first home. Here\u2019s a bit more information to help you think about those two benefits of homeownership to see if they\u2019re a key factor for you too.<\/p>\n<h4><strong>When You Buy a Home, You Have More Stability than When You Rent <\/strong><\/h4>\n<p>You might want to stop renting because rents keep <a href=\"https:\/\/www.census.gov\/housing\/hvs\/files\/currenthvspress.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">going up<\/a>. If you\u2019re a renter, that means there\u2019s a chance your payment will increase each time you sign a new rental agreement or renew your current one.<\/p>\n<p>On the other hand, when you buy your home with a fixed-rate mortgage, your monthly housing payment is predictable over the length of that loan. This stability can give you a peace of mind that renting just can\u2019t provide. Jeff Ostrowski, real estate journalist,<em> <\/em><a href=\"https:\/\/www.moneygeek.com\/mortgage\/resources\/rent-vs-buy-guide\/\" rel=\"noopener noreferrer\" target=\"_blank\">breaks it down<\/a>:<\/p>\n<blockquote><p><em>\u201c<\/em><strong><em>With a fixed-rate mortgage, your monthly principal and interest payment is set for as long as you keep the loan.<\/em><\/strong><em> Sign a rental lease, however, and you could see your rent rise the following year, the year after that and so on.\u201d<\/em><\/p><\/blockquote>\n<h4><strong>When You Buy a Home, You Grow Your Wealth as Home Values Climb<\/strong><\/h4>\n<p>Beyond that, owning a home can also be a great long-term investment. While renting may be the more affordable option right now, it doesn\u2019t provide an avenue for you to grow your wealth over time. Mark Fleming, Chief Economist at <em>First American<\/em>, <a href=\"https:\/\/blog.firstam.com\/economics\/the-reconomy-podcast-should-you-rent-or-buy-a-home-right-now\" rel=\"noopener noreferrer\" target=\"_blank\">explains<\/a> that\u2019s an important distinction to consider:<\/p>\n<blockquote><p>\u201c<em>Given current dynamics, more young households may choose to rent in the near term as the cost to own, excluding house price appreciation, has unequivocally increased. <\/em><strong><em>Yet, accounting for house price appreciation in that cost of homeownership, whether to rent or buy will depend on where, and if, a home is likely to cost more or less in the near future.<\/em><\/strong><em>\u201d<\/em><\/p><\/blockquote>\n<p><strong>Basically, renting doesn\u2019t allow you to build equity. In contrast, homeownership can help you grow your net worth as your home\u2019s value <\/strong><a href=\"https:\/\/www.simplifyingthemarket.com\/2023\/09\/08\/home-price-forecasts-revised-for-2023-infographic\/?a=375140-ca8522ad04357da9549c08492a932f70\" rel=\"noopener noreferrer\" target=\"_blank\"><strong>appreciates<\/strong><\/a><strong>.<\/strong> That\u2019s a significant perk you can\u2019t get if you keep renting.<\/p>\n<p>When you take that into account, it may make better financial sense to buy. Most experts project home prices will <a href=\"https:\/\/www.simplifyingthemarket.com\/2023\/09\/12\/what-experts-project-for-home-prices-over-the-next-5-years\/?a=375140-ca8522ad04357da9549c08492a932f70\" rel=\"noopener noreferrer\" target=\"_blank\">continue to appreciate<\/a> over the next few years at a pace that\u2019s more normal for the market. That means when you buy a home, not only are you investing in a place to live, but you\u2019re also investing in your financial future.&nbsp;<\/p>\n<h3>Bottom Line<\/h3>\n<p>If you&#8217;re ready, it can be a smart move to buy your first home instead of renting. Connect with a real estate professional so you can stabilize your housing payment and start building wealth for your future.<\/p>\n<p>Source: New feed<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Are you considering buying your first home? If so, it can be helpful to know what led other people to make that decision. According to a recent survey of first-time homebuyers by PulteGroup: \u201cWhen asked why they purchased their first home recently, the answer was simple: because they wanted to. Either the desire to stop [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5145,"comment_status":"false","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10157519356927224_105287467588662":"","twitter_15771620_15771620":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[54],"class_list":{"0":"post-5144","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-local-info","8":"tag-100-financing","9":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Understanding the Benefits of Owning Your First Home&#8212;NWI Loan Guy Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nwiloanguy.com\/blog\/understanding-the-benefits-of-owning-your-first-home\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Understanding the Benefits of Owning Your First Home&#8212;NWI Loan Guy Blog\" \/>\n<meta property=\"og:description\" content=\"Are you considering buying your first home? If so, it can be helpful to know what led other people to make that decision. According to a recent survey of first-time homebuyers by PulteGroup: \u201cWhen asked why they purchased their first home recently, the answer was simple: because they wanted to. Either the desire to stop [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/nwiloanguy.com\/blog\/understanding-the-benefits-of-owning-your-first-home\/\" \/>\n<meta property=\"og:site_name\" content=\"NWI Loan Guy Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/NWIHomeLoans\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/NWIHomeLoans\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-04T10:30:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-01-19T02:55:17+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/nwiloanguy.com\/blog\/wp-content\/uploads\/2023\/10\/20231004-Understanding-the-benefits-of-owning-your-first-home.png\" \/>\n\t<meta property=\"og:image:width\" content=\"750\" \/>\n\t<meta property=\"og:image:height\" content=\"410\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Scott\" \/>\n<meta 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