Benefits of Home Ownership Home ownership is often called the "American Dream" because of the pride that comes with owning a place you can personalize and call your own. However, beyond these intangible benefits, it is important to consider the following benefits when determining whether to rent or buy:
	Tax Benefits The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, as well as some of the costs involved in buying your home.The tax deductions you can take for mortgage interest and property taxes greatly increase the financial benefits of home ownership. Here's how it works. Assume: $9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest) $2,700 = Property taxes (at 1.5 percent on $180,000 assessed value ______ $12,577 = Total deduction $3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate) (12,577 X .28 = $3,521.56) Note that mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.
	Other Benefits to Home Ownership
	Gain.  Over last five years (1998-2002) national home prices have increased at an average of 5.4 percent annually. And while there's no guarantee of appreciation, a 2001 study by the National Association of REALTORS found that the typical homeowner has approximately $50,000 of unrealized gain in a home.
	Equity.   Money paid for rent is money that you'll never see again, but mortgage payments let you build equity ownership interest in your home.  Building equity in your home is also a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
	Predictability. Unlike rent, your mortgage payments don't go up over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will rise.
	Freedom. The home is yours. You can decorate any way you want and be able to benefit from your investment for as long as you own the home.
	Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.
	Home owners create positive environments for families. Children of home owners are 59% more likely to become homeowners.  Their children are also 25% more likely to graduate from high school and 116% more likely to graduate from college.
	To calculate whether renting or buying is the best financial option for you, use this calculator courtesy of Ginnie Mae.  http://www.ginniemae.gov/ypth/rent_vs_buy/Rent_vs_buy.htm