- Gaining equity: Buying a home today for one price and having it increase in value over 20 to 30 years is a great way to increase your wealth. Start by identifying a home that has the potential to appreciate over time. According to the Federal Housing Agency, homes appreciated 34.7 percent from 2012 to 2017.
- Taxes: The mortgage interest on your residence is tax-deductible. If you earn $100,000 and your mortgage interest is $9,900, you could be able to deduct the entire amount. In 2019, the tax deductions have become somewhat more stringent, though.
- Establishing roots: Even if you travel extensively, you might have a spouse and kids. Having your kids attend a regular school could benefit them socially.
- Retirement: Wouldn't it be nice to have your home paid off when you reach retirement age? A mortgage is one of the highest expenses you will ever have, and being mortgage-free in retirement would certainly give you peace of mind.