Celebrating National Homeownership Month

June marks National Homeownership Month, a time to celebrate and reflect on the significant role homeownership plays in financial stability and wealth-building. Whether you're a current homeowner or exploring the possibility of purchasing a home, understanding how homeownership impacts your finances is crucial. This month is the perfect opportunity to consider how owning a home influences your overall financial health.

Why Homeownership Matters Financially

Homeownership is not just about having a roof over your head; it's a powerful tool for building long-term wealth. A major benefit is home equity, which substantially contributes to a homeowner's net worth. In fact, data shows that the median net worth of homeowners is nearly 40 times higher than that of renters. Beyond equity, homeownership contributes to financial security, with 90% of homeowners reporting a greater sense of financial well-being compared to when they were renting.

Advice for Current Homeowners

If you own a home, it's important to protect your investment. Regular maintenance and strategic upgrades to your property can preserve and even boost its value. In the current high-interest-rate environment, reviewing your mortgage details and understanding your home equity is essential. While refinancing may not always be the best option, leveraging your home equity for financial planning or considering home equity loans can be beneficial. Additionally, having an emergency fund specifically for home repairs can prevent financial strain from unexpected costs.

Advice for Future Homeowners

Prospective homebuyers should assess their financial readiness by checking credit scores, savings, and budgeting to understand what they can afford. Look into first-time homebuyer assistance programs that offer grants or low-interest loans to help with down payments. It's also vital to be aware of the total costs associated with owning a home—beyond just the mortgage, you'll need to account for property taxes, insurance, utilities, and maintenance to avoid financial surprises.

Ultimately, homeownership is more than just acquiring a place to live; it's a strategic component of financial stability and long-term wealth-building. This June, consider taking a financial health check or consulting a professional to ensure that homeownership aligns with your long-term financial goals.