Reprinted with permission from Freddie Mac.


  • Owning a home is a long-term commitment of time and money
  • Homeownership may allow you to take advantage of tax benefits
  • With a 30-year fixed-rate mortgage, your monthly payments will be stable for the life of the loan

Owning your home is considered the American Dream by many, and here is why:

  • You can take pride in ownership. You will have a place that is uniquely “yours” that you can customize – from paint colors to major remodeling projects.
  • You may have some tax benefits. You may be able to deduct the interest on your mortgage and property taxes. These tax savings may offset a portion of the cost of owning your home.
  • Your monthly payments will remain stable. With fixed-rate mortgages, your monthly principal and interest payments will stay the same for the entire period of the loan. This will make it easier to plan and budget – whereas rental rates may rise over time.
  • You have the opportunity to create equity and enjoy stability. Owning your own home may be a fantastic way to create equity for the future and provide stability and security for you and your family.

Overall, buying a home can be a worthwhile investment, but you need to remember you will become your own landlord. You are now responsible for the maintenance and upkeep of your home and property. This means that:

  • You are responsible for all maintenance costs, from small plumbing problems to major – and costly – issues such as roof replacement and water pipe repair.
  • You will have to budget for all home-related costs, including utilities, homeowner association dues (if applicable), homeowner insurance premiums, and property taxes.
  • You will have to pay your mortgage and all other bills on time. Paying not only your mortgage, but all your bills on time helps you build and maintain good credit. This is essential if you want to borrow again in the future for home renovations, a new car, or student loans.

Due to unforeseen circumstances, there is also a chance that risks may arise:

  • You may need to sell your home quickly. Depending on the local real estate market, you might not be able to sell your home quickly, or for the price you seek, and you will still be responsible for the mortgage.
  • Your property value could depreciate. Your home can lose value for a number of reasons, such as economic conditions, your home not being kept up, or a drop in neighborhood home values. You may want to ask your lender if they provide down payment insurance coverage to help protect you from the risk of loss. Be sure to weigh these potential benefits and risks carefully before you start your search.


  1. Homeownership can offer financial security and stability.
  2. There are no landlords with homeownership. Be sure you have the time and money to care for your property.
  3. You will damage your credit if do not pay your mortgage on time.