Why buy a home?
    
           
   
For many, owning a home is the long-awaited realization of a dream. For others, it's an investment that provides tax benefits and builds wealth. Whatever your reasons, home ownership has many rewards:
    
         
   
   
Income tax reduction. In the early years of a mortgage, most of your monthly payments go toward interest on the loan. In most cases, the mortgage interest (and property tax) is deductible from your taxable income. And that means a lower tax bill. Often, your "after tax" cost of owning a home can be lower than renting. Consult your tax advisor for details.
    
             
   
Wealth building possibilities. When you rent, you give your hard-earned money away to someone else. But, when you buy, your money is invested. As you pay down your home loan balance, you gradually build "equity" in your home. Equity is the difference between the market value of your home and the outstanding mortgage balance. It's a strong financial asset that belongs to you and can grow over time.
    
         
   
   
Tax-deductible borrowing power. As your home equity increases, you can borrow against it. A home equity loan or "line of credit" can be used for making home improvements, paying for college, buying a new car, or almost any need. Because the loan is backed by the equity in your home, you may be able to deduct that interest from your taxable income and lower your tax bill. Consult your tax advisor for details.