Are you renting right now? You might want to reconsider after you hear this. You probably know, apartment rent can cost just as much—even more than a monthly mortgage payment. But listen to this! Even if your rent is a little less than a house payment—what do you have to show for the thousands of dollars you’ve spent on rent? Nothing! With a home of your own, part of your mortgage payment will get you a hefty tax deduction at the year’s end. Still skeptical? Let’s do the math. On an $85,000 mortgage, your monthly payment will be about $775 a month. Pretty similar to renting a good-sized apartment. But, you’ll deduct more than $8400 in interest and real estate taxes when you file with the IRS each year. That’s an annual tax savings of about $1700, depending on your tax bracket. And if that’s not reason enough to own a home, let’s talk about your future. 

When you buy a house, you’re building equity. That’s the difference between the home’s value and the amount you owe. Each time you make a monthly payment, you’re increasing the amount of equity in your home. So, if in a few years you sell your house, it’s likely you’ll have enough equity to afford an even better home. And remember—while rent often increases every year, your mortgage payment will remain the same.