Homeownership is a big part of the American Dream. But buying, owning, and maintaining a place of your own may come with unexpected costs.
Most people focus on the financial benefits of homeownership. Your monthly mortgage payment may be the equivalent of (or sometimes even less) than your rent. As you pay your loan, you lower the principal balance and increase your equity. Many homes increase in value over time.
This is why traditional wisdom says that renters “throw away” money. They’re paying the landlord’s mortgage without building equity.
But this doesn’t necessarily mean that homeownership is right for you.