(ARA) - A still murky economy and uncertain real estate market may have you wondering if buying a home is a good idea. Whether you're thinking about buying, or already have and just need some affirmation, you may find it comforting to know there are still plenty of good reasons for financially stable people to buy a house. Here are a few:
* Homeownership can help make good credit even better. If your credit is in poor shape, you'll want to monitor it before seeking a mortgage. But if you have good credit, live within your means, and consistently make good financial decisions, a mortgage can be the kind of "good debt" that helps your overall financial health. Making regular payments on a mortgage shows potential lenders that you're a less risky candidate for a home loan. Before you begin home shopping, it's a good idea to check your credit. Enrolling in a product like freecreditscore.com can help you better understand and leverage your credit.
* A mortgage can function like an automatic savings plan. By now, you've read the news reports about how little we Americans save these days. Well, every year you pay on your fixed-rate mortgage, is a year of building equity, and equity is like money in the bank. When it's time to sell - whether you've stayed in your home seven years or the full 30 year term - you'll have created equity and should be able to sell your house for more than you owe.
* Homeownership comes with plenty of financial perks, including an income tax credit for property taxes you pay on your home. For detailed information on tax breaks check out IRS.gov. Buying a home also affords you the opportunity to halt your housing costs. Rent will always go up from year to year, but if you have a fixed-rate mortgage (avoid adjustable rates) your biggest annual expense - housing costs - will be locked-in.
* Mortgage interest is a good deal when stacked up against other types of interest that don't do much for you - such as high credit card interest rates or low rates on savings accounts and CDs. Mortgage rates are low right now, meaning you can pay less over the life of a loan than at practically any other time in recent history. Plus, it's the only kind of interest that you can deduct from your taxes.
* Prices are still relatively low and inventory is high. It's been a buyer's market for a long time, but that's going to change. The question is: when will the market start to improve in your area, taking home prices with it? You'll have to do some legwork and astute research to determine when is the best time for you to buy.
If you monitor your credit and are on a sound financial footing, buying a home can still be a good idea. And now is as good a time as any to make your purchase.