Four Corners Florida

Homeownership by Miuke Levine

Secure Your Future Through Homeownership


Too many families are struggling to pay the bills. When factoring retirement into the equation household financial management gets even more difficult. Wages are stagnant and the cost of living is rising. Saving money is more difficult than ever. What strategies are available to families that will provide the income necessary to experience an enjoyable lifestyle and save for retirement? Homeownership is an important piece of the puzzle.

Homeownership and Home Equity

The first two things that most people think about when considering purchasing a home are the down payment and the monthly payment. These are important factors. By fixing the monthly housing payment over the life of a loan (fifteen to thirty years) homeowners are assured that their housing expense will be consistent over time. Home equity is another important factor. A long-term approach to housing reveals that home equity is a primary reason to own a home. The regular repayment of mortgage debt results in increasing equity stored in the homeowners property value. Home equity empowers people to accomplish objectives that would otherwise be unachievable.

Families often utilize the equity in their homes to pay for educational needs and other beneficial investments. When families own their homes free of mortgage debt life becomes much easier. Typically, a household pays one third of its income towards its housing expense. When the housing expense is reduced to the values tied to property taxes, homeowners insurance and homeowners association dues, discretionary income increases significantly. By increasing discretionary income, people are empowered to invest in things that improve their income and their net worth. For example, some people may choose to start a business. Increasing discretionary income empowers people to improve their lifestyles. Higher discretionary income, achieved by lowering the housing expense, enables people to save more money for retirement.

Start Homeownership NOW

Too many people perceive owning a home free of mortgage debt as unachievable. It is not. The way to achieve a housing experience free of mortgage debt is to begin the process of paying off a home mortgage now. The sooner people embark upon the homeownership experience the sooner they can be debt free. An important step towards financial freedom is the purchase of a house. To start building home equity now people must make the decision to buy a house.

Written by Mike Levine, Century 21 World Properties’ owner and broker. Part 1 of 3.  Contact Mike Levine.