No matter your age, buying a home is one of the most—if not the most—significant purchases you will make. Investing that noteworthy sum of money pays off, and studies have shown that owning a home is a key factor in wealth creation. Whether you are thinking about retirement or just got your first job, understanding what owning a home means for your financial future is important. Here is what each generation should know about homeownership.
As you approach your golden years, make sure that your plan to retire lines up with your timeline for paying off your mortgage. Owning your home in full before your retirement will significantly decrease your living expenses and the value of your home will offer you a financial cushion.
You should also ensure the remaining years of your mortgage are fewer than the years left before you plan to retire. If you are thinking about refinancing your home, make sure you get a term short enough to line up with your plans for the future. Since you are approaching the years where you will make your maximum income, be aggressive with your mortgage payments. If you were affected by the foreclosure crisis, now is the time to start investing in property again.
Millennials may think they are too young to consider owning a home, but the sooner you are able to invest in property the higher rate of return you will see. Home owning will not just help you build your wealth in the long run; in many cases your mortgage payments may be equal to or even less than your rent. Start saving now for your down payment and researching real estate markets in your area.
When you are ready to purchase a home, make sure you contact the escrow experts at Brighton Escrow in Hermosa Beach, California. Our team of dedicated escrow officers is here to secure you the most competitive rates in the industry. Call us today!