By Matt Allen
Vice President, Portfolio Lending (NMLS #415037)

A Guide for First-Time Home Buyers – Part Two: What to Expect with Owning

Feb 14, 2019

  • First-Time Home Buyer
  • Home Loans

If you’re a first-time home buyer, the task ahead can look daunting. That’s why we’ve put together this series of blogs to help guide you through the home buying process. For the last blog, we looked at some of the terms associated with purchasing a house. For this one, let’s discuss some of the expectations that come with owning a house:

The perks 

Owning can be a good investment:  Housing prices often fluctuate in the short term. But in the long run, homes generally appreciate in value, giving a good return on your investment.

You’ll earn equity: With each payment you make, a portion goes toward the loan's principal, which increases your equity. As your home increases in value, so does your equity. So, if or when you finally sell your home, you’ll have more money to put down on the next one!

You could reduce your taxes*:  Your mortgage interest and property tax payments may be deductible from your federal (and many state) taxes, so you’ll likely owe Uncle Sam less at the end of each year.

You’ll have more freedom: It’s your own place. Paint the walls purple, plant snapdragons or cacti, and dance in your PJs on Thursday nights. A great perk of owning is that you get to choose how you make the house your home!

The responsibilities 

While many argue that homeownership's pros outweigh the cons, the grass isn’t always greener. In addition to paying a monthly mortgage payment (and possibly PMI), there are other expenses you’ll need to keep in mind:

  • Homeowners Insurance
  • Property taxes
  • Utility bills
  • Unexpected & expected maintenance costs
  • Home Improvement
  • Miscellaneous fees (a home security system, HOA fees, etc.)

Look for more blogs from NASB to help guide you through your first home purchase.

*This is not intended to and does not constitute legal advice or financial / investment/tax advice. North American Savings Bank does not guarantee or promise the results obtained. The consumer should consult a tax adviser for further information regarding the deductibility of interest and charges.