Many first time home buyers are pleasantly surprised at the financial advantages of owning their own homes. Often the cost of owning your home, is actually lower than the cost of renting.

In most cases, all of your mortgage interest is tax deductible. This can make a significant change in your take-home pay. Remember that tax laws are constantly changing. Be sure to check with your tax professional for details.

If you are renting now, you can probably expect your rent to increase virtually every year, FOREVER. In most cases, your monthly home loan payment will stay basically the same for a number of years, and then it will disappear, because you have paid it off. You never pay off rent.

Your new home will probably increase in value. When you move out of your rental, you may get your deposit back, but that's about it. When you need to move out of a home you own, you may sell your home. Usually homes appreciate in value, so you will probably make a profit, simply by living in your home and making the mortgage payments on time. Sometimes this profit can be substantial. In booming economic time, it is not unusual for a home to double in value in just a few years.

Some people use these increases to help them move up to a larger or more expensive home. Some just use it as a way to help them retire in financial comfort, or to make other investments.

Michael Cornell can provide you with a "Buy vs. Rent" comparison worksheet, that demonstrates approximately the financial differences between renting and buying your home.

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