The benefits of home ownership are both financial and psychological:

• Home ownership is a durable (real) investment.  Historically, housing has appreciated in value for decades.  Although no one can say a specific home in a specific location will increase in value, generally speaking the odds favor most homeowners.  Also, monthly mortgage payments (the part that reduces the principal loan balance) become a solid form of savings.

• Numerous unique tax advantages are available to homeowners.  Unlike other investment tax shelters, home ownership works for you even as you live in your investment.  For example, the thousands of dollars you pay in mortgage interest is deductible.  This tax deduction alone can sometimes make owning your own home cheaper than renting with "after-tax" take-home dollars.

• By accumulating equity in your home you can later "move up" to another home, with a good down payment on hand.

• Home ownership offers you the opportunity to take control of your housing costs.  Mortgage payments (even on adjustable-rate mortgages) are more predictable than rents.

• Owning your own home allows great freedom of choice in choosing community, architecture, interior decor, appliance selection, plus whatever method of financing best suits your situation.