NOTICE: Internet Explorer was retired by Microsoft on June 15th, 2022 and is no longer supported. This could change how you access Online Banking.

Skip Navigation

Home, Sweet Home: 10 Benefits of Homeownership

06/06/2023 - Smart Home Buying & Ownership

Couple assembling furniture together.

Home, Sweet Home: 10 Benefits of Homeownership

Here are 10 perks of homeownership that you can’t get from renting.

For a long time, owning a home has been part of the American Dream. Is it right for you? While homeownership requires a substantial upfront investment, it has several long-term benefits. Let’s look at some advantages of owning a home.

1. Your monthly payments are more stable. When you rent a house or an apartment, you don’t have any control over how much you pay. Your landlord can decide to raise your rent – sometimes by quite a bit. When you own a home, especially if you have a fixed-rate mortgage, you know what you’ll be paying every month. Stable payments make it easier to budget and can give you one less thing to worry about.

2. You can save more in the long run. While there are costs to buying and maintaining a home, having predictable monthly payments can end up being less expensive than dealing with regular rent increases every time you renew your lease. Rent hikes or paying high rent for a new house or apartment can really beat up your budget.

3. You can increase your net worth. Owning a home is a good investment, as its value generally goes up over time. Let’s say you buy a home today worth $200,000, and it increases in value by 3.9% annually. After five years, your home would be worth about $242,163. That’s a benefit you won’t get from renting, where you put money in but never get it back.

4. You can build equity. What’s equity? Simply put, it’s the value you have in an asset, the difference between the home’s worth and what you owe on the mortgage. You can build home equity in two ways:

  • Make your monthly mortgage payments, which reduces the amount you owe.
  • Your home may appreciate over time, increasing its value – sometimes substantially.

Once again, renters don’t get this benefit because you can’t build equity by paying rent.

5. Your home can be a source of cash. Another benefit of building home equity is the ability to tap into your home’s value for cash. You can do this in several ways:

  • Home Equity Loan
    This is essentially a second mortgage. You can generally borrow up to around 90% of the equity in your home.
    This provides access to a line of credit. You can usually borrow approximately up to 90% of your home’s equity.
  • Cash-Out Refinance
    With this option, you take out a new mortgage for more than you currently owe, use that money to pay off the original loan and cover closing costs, and keep what’s left. You can typically borrow up to 80% equity.

6. You may be able to get tax breaks. Unlike renters, homeowners enjoy several tax benefits. If you itemize deductions on your federal tax return, you may be able to claim the following:

  • Mortgage Interest
    You may be able to deduct mortgage interest you paid. Depending on where you live, you might also get a state mortgage interest deduction.
  • Private Mortgage Insurance
    You may be able to also deduct money you paid for mortgage insurance premiums.
  • Property Taxes
    You may deduct money you paid in property tax payments, as well as local and state income taxes and sales taxes.

Down the road, depending on how much profit you make when you sell your home, you might not have to pay capital gains taxes on the earnings. Be sure to consult a tax advisor to learn how buying a home can impact your taxes.

7. You can build credit. Your payment history makes up 35% of your credit score, so on-time monthly mortgage payments can help keep your score in good shape. Paying on time can also help you build credit, which can make it easier to get other types of financing.

8. You have the freedom to personalize your home. One of the biggest benefits of homeownership is making it your own. Unless you live in a community governed by a homeowners association, you can tear down walls, make additions, and decorate your home in almost any way you like. That’s something renters can’t do. Renovating your home may also increase its value, so it’s a win-win situation.

9. You can build a sense of community. Compared to renters, homeowners usually stay in the same place longer. This helps build neighborhood pride and stability, along with an increased sense of community. Maintaining a desirable neighborhood can also increase the value of your property – an added benefit.

10. You can increase your financial knowledge. There’s a lot involved in buying a house and handling mortgage payments and ongoing maintenance. Parents can use that knowledge to help their kids learn about finances. A solid financial education is one of the best things a person can have.

When You’re Ready to Make a Move

As you can see, the advantages of owning a home over renting one are plentiful. Before you dive into homeownership, you’ll want to consider the current market, your finances, and your financial goals. If you’re seriously considering buying a home, it’s a smart move to get pre-qualified. This will help you determine how much you can afford and what your monthly mortgage payments might look like. If you have questions or want help planning for a home purchase, reach out to your local WesBanco mortgage officer.

Find a Loan Officer


Content is for informational purposes only and is not intended to provide legal or financial advice. The views and opinions expressed do not necessarily represent the views and opinions of WesBanco.

While we hope you find this content useful, it is only intended to serve as a starting point. Your next step is to speak with a qualified, licensed professional who can provide advice tailored to your individual circumstances. Nothing in this article, nor in any associated resources, should be construed as financial or legal advice. Furthermore, while we have made good faith efforts to ensure that the information presented was correct as of the date the content was prepared, we are unable to guarantee that it remains accurate today.

Neither Strategy Academy nor its sponsoring partners make any warranties or representations as to the accuracy, applicability, completeness, or suitability for any particular purpose of the information contained herein. Strategy Academy and its sponsoring partners expressly disclaim any liability arising from the use or misuse of these materials and, by visiting this site, you agree to release Strategy Academy and its sponsoring partners from any such liability. Do not rely upon the information provided in this content when making decisions regarding financial or legal matters without first consulting with a qualified, licensed professional.

Stay Informed:

Sign up for regular news & updates.

    Find a Loan Officer

    Find your local Mortgage Loan Officer and you can apply directly with them online or just click “Find one for me” and apply with us online! We make it extremely convenient for you to get started on your Mortgage application.

    Find a Loan Officer
    family holding make-shift roof over their heads

    This will close in 0 seconds