How Owning a Mortgage – Home Is Advantageous?

Owning a home is advantageous in many ways, but some go underreported or unappreciated. First-time buyers need to understand the freedom and social privileges a home symbolizes. It even means do whatever renovation or changes you desire without any consent from the landlord.

Some of the advantages of mortgage-home are obvious but a few are not on your radar. People of Seattle have a lot of options when they seek a loan to buy a dream house. It is wise to choose a reliable local Seattle Mortgage Company called Sammamish. Being a local lender, you can communicate with the team face-to-face. Sammamish has been in the mortgage arena for more than two decades.

Benefits of owning a mortgage-home

Tax benefits

Mortgage interest and property tax deduction from annual income taxes is a huge gain. The government subsidizes your asset purchase.

Price appreciation

Property prices increase over time. Even if in a year the percentage is less say 3.4% but over 30 years this can calculate to a huge amount. For example, a $200,000 house in 2020 becomes a property with a value of $545,313 in 2050. It means an increase of 172.7%.

Inflation hedge

Home rent and cost tend to surpass the inflation rate. Even though the interest rates are kept low, overtime inflation pops up making it very costly to invest not just in properties but other purchases. Today, investors finance in homes because it protects their investment in due course.

Improves credit

A large part of your credit score history includes debt details, which the lenders use to decide the loan terms, interest rates and amount. A committed mortgage payment escalates your credit score. On the other hand, delayed or missed payments can damage your credit score. This makes it impossible to secure loans at favorable rates in the future.

Builds equity

Equity can be defined as the upfront cash you pay off. For example, if you pay 20% upfront and the remaining 80% gets financed by a lender then your starting equity is 20%. With every installment paid, your equity increases offering more purchase and borrowing power.

Borrowing power

An increase in equity means you can borrow more funds or a second mortgage. The borrowed cash can be used to renovate, fund child education, pay medical bills or buy a new boat or car.


An increase in home equity also empowers the owner to earn more profit from home resale and apply that fund towards a new home purchase. According to a study, the first-time upfront payment is 3% but repeat buyers leverage on equity buildup as well as appreciation in their asset value, so their down payment increases to 22%.

Strategic saving plan

Paying monthly mortgage regularly can make you consider a strategic saving plan. Just add an amount, which surpasses your pooled monthly interest, taxes, principals, and insurance installments. For example, on a 30-year mortgage at a 4% interest rate on $110,000, if you make an extra payment every year [13 rather than regular 12 months] then the term shortens by 4 years.

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