Home ownership brings you great income tax savings each year because you can deduct mortgage interest and property taxes from your income.  And these expenses are deductible on federal and state tax returns.

The best part about owning a home is that each monthly payment buys you more and more of that home, while its value continues to increase.  That increase in value belongs to you.  You can borrow against it or use it to increase your own net worth.  No other purchase allows you to earn so much so quickly.

You have been seriously thinking about buying a home.  How much of your chase should you spend toward the down payment?  Are there any advantages to investing the least amount possible toward the equity?

A low down payment allows you to:

• Afford the purchase of a home
• Choose from a wider price range of homes
• Retain cash to invest elsewhere
• Retain cash to spend on home furnishings or improvements
• Receive larger mortgage interest tax write-offs on a larger loan amount

What are the advantages of home ownership?

• Home ownership represents a form of forced savings; many families would never accumulate assets otherwise
• Mortgage payments contribute to an investment, particularly if the property is located where it increases in value over a period of years
• Interest and property taxes are income tax deductions
• Equity in a home improves the credit status of the family and could be used as collateral for an emergency loan
• Housing costs, with a fixed rate mortgage, are stabilized because present and future costs can be estimated and planned
• Home ownership contributes to security, especially in retirement years when income normally decreases
• Home ownership generally strengthens social and financial standing in the community
• Home ownership contributes to the gernal well being and roots of the family, especially for children
• There is freedom to change the house and surroundings if desired
• Homeowners are generally more concerned about, and involved in community affairs