The Benefits of Owning a Home

Homeownership is a compelling part of the American dream for good reason. There is something immensely comforting about owning a place that exists solely to house us and our loved ones—that offers us a place to hang our hats and rest our heads. More than that, however, there are certain economic and social benefits that come with homeownership that give us reason to rejoice and empower us to flourish, too. 

Building Long-term Wealth

One of the most significant advantages of homeownership is the opportunity to build long-term wealth. With every mortgage payment you make, you accumulate additional equity in your home. Once you’ve built enough equity, you can leverage it to pay for that kitchen renovation you’ve been dreaming of. In fact, with a home equity loan or HELOC (home equity line of credit), you can pay for your child's education, start a business, or even cover unexpected retirement expenses—your choice!  

Driving Economic Growth

Homeownership also plays a crucial role in driving economic growth. The housing market pumps valuable lifeblood into the economy by creating jobs for builders and contractors, real estate agents, and home improvement professionals. When you borrow against your home to finance that kitchen of your dreams, it’s not just your house that stands to benefit! The money you pay your contractors contributes to the cycle of investment and job creation that strengthens local economies and encourages overall economic growth.

Savings Come Tax Season

Homeowners have an advantage at tax time, too. When you own your own place, you can deduct mortgage interest and property taxes on your federal income tax returns. Or let’s say you used a home equity loan to pay for your big kitchen renovation. You can deduct the interest you’ve paid on your home equity loan, too! Deductions like these can result in substantial savings, reducing the overall cost of homeownership for you.

Added Social Benefits

In addition to these economic benefits, homeownership has profound social benefits that impact individuals and communities in immeasurable ways, all leading to a higher quality of life. People who own homes tend to become rooted in their neighborhoods—and then they bloom where they are planted. For example, homeowners are more likely to build relationships with neighbors, engage in community activities, and volunteer. This increased social connectedness contributes to improved quality of life and safer, more vibrant neighborhoods.

Making Your Home Your Own

Homeowners can also personalize and customize their residences—something renters typically cannot! As a homeowner, you have the freedom to renovate, decorate, and make structural changes, reflecting your unique styles and tastes. When you put your own stamp on your property—perhaps by adding a garden or building a pole barn—you are able to communicate something of who you are and what you love to the surrounding community, too. On a personal level, being able to do all of these things creates a sense of comfort, satisfaction, and pride, which leads to increased overall happiness and a sense of well-being.

There's More? Yes!

Research has also found a strong correlation between homeownership and improved educational and health outcomes. Did you know children who grow up in stable, owned homes tend to have higher academic achievements and perform better in school overall? Additionally, homeownership has been associated with better health outcomes for both children and adults alike. Homeowners generally have lower rates of chronic illnesses, reduced stress levels, and improved mental well-being. All of this can be attributed, at least in part, to the stability and security that homeownership provides.

At First National Bank of Sycamore, we are committed to helping people like you become homeowners so you can experience all of the economic and social benefits above and then some. Take the first step on your journey to homeownership by visiting one of our locations, or by checking out our mortgage webcenter, where you can take a look at our loan officers, review rates, and start the application process. 

Homeownership may be the American Dream, but we’re in the business of making that dream a reality for folks like you every day! Click here to learn more.