But your kid is still paying a landlord - or living at home with you.
Sound familiar? Today, many young people are waiting to buy a home - and missing out on the important advantages of homeownership. If your son or daughter is one of them, here are 7 reasons to help them become homeowners.
1. Rising Home Prices
Thanks to its many jobs and vibrant neighborhoods, we're in one of the country's hottest housing markets. But as demand increases, so do prices. Beginning the homebuying process now should help in finding the best options and best prices for your son or daughter.
2. Investment Value
Well-cared-for homes tend to gain value over time. Instead of making rent payments they'll never see again, your child can start turning mortgage payments into a sizable nest egg - and a more comfortable retirement.
3. (Currently) Low Rates
Interest rates are starting to rise. By locking in a lower fixed rate on a mortgage now, your son or daughter could save lots of money over time. On top of that, Ridgewood Savings Bank's Affordable Mortgage program offers rates that are .25% lower than conforming rates, making it easier for eligible applicants to find the right loan for their needs and budget.
4. Tax Benefits
Despite recent changes to the tax law, your child may still be able to take advantage of important tax benefits, such as deductions of interest, property taxes and some mortgage closing costs*.
5. More Freedom
If your child is renting or staying with you, they have little control over their living space. As a homeowner, your son or daughter can customize their home to fit their needs and tastes, while having the flexibility to make upgrades, like replacing appliances or renovating a bathroom.
6. More Stability
If your child is renting, issues affecting their living situation are often out of their hands, such as rising rent, landlord changes and maintenance. Owning a home can remove these uncertainties. And, having a long-term address can make it easier for your son or daughter to build friendships with neighbors, put down roots in the community and raise a family.
7. Your Relationship with Your Child
The independence that comes with homeownership can work wonders for your relationship. If your son or daughter is currently staying with you, getting them their own place can add valuable "breathing room" to your relationship and make get-togethers more fun.
Parents Can Help
Even when they're all grown up, you still want the best for your child. That's why some parents choose to provide financial support to help their kids buy their first home.
This is a personal decision that requires careful consideration. Be sure that this decision won't negatively affect your own financial well-being. If you choose to offer financial support, here are some ways you can help:
- Pitch in for the down payment
- Help your child qualify for a mortgage, or get a better rate, by serving as a co-signer
- Share ownership of the home as a non-occupying co-borrower
As a trusted local lender, Ridgewood Savings Bank has been helping New Yorkers achieve their homeownership dreams since 1921. Turn to us for some of the area's best rates, plus low down payments, no application fee and parent co-signer options. To learn more and talk to one of our friendly mortgage consultants, call (347) 834-2265 or visit us online.
Terms and conditions subject to change without notice.
*For tax deductibility information, please consult your tax advisor.
Equal Housing Lender