Decades after the phrase “The American Dream” was first coined, Owning a home is still among the lifetime achievement goals held by most individuals and families. The purchase of a home may also be viewed as a very important investment.

In most areas around the country, the value of a house tends to increase (or appreciate) over time. In contrast to rental payments, monthly Mortgage payments build into property ownership called equity, which the home owner can convert into cash through refinancing or selling. Equally important, home owners are entitled to tax advantages that are not available to renters. In most instances, the interest paid on a home mortgage is tax deductible (consult your tax adviser), which can result in savings each year on a home owner’s federal tax returns. Unlike rent, which usually increases every year, the payments of fixed-rate mortgage programs stay the same for the entire term of the loan, allowing a home owner to make long-range financial plans.

Once potential home buyers considers how much they pay out in rent, the question becomes this: How can one afford not to buy a home? Only in a few cases, such as for employees who expect to relocate in less than three or four years, does renting make better financial sense than owning. Unless a renter falls into one of these few categories, he or she should consider buying a home.

Today’s first-time home buyer Loan Programs enable renters to enjoy the benefits of home ownership for not much more ­­ and in some cases less ­­ money than they are paying in rent. “Many lenders offer affordable loan programs with low or no down payment requirements that feature reduced closing costs, relaxed qualifying guidelines, and, with adjustable rate mortgages (ARMs), below-market introductory rates,” explains John Gray, SVP of BankAmerica Mortgage. “Options such as government loans, zero points, or a pre-payment fee in exchange for a reduction in points means renters need less cash to close on a home of their own.”

But before taking immediate advantage of the opportunity, do some research first. Most prospective buyers find a home before they consider their financing options. Talk to your local lenders and find out how much home you can afford. A mortgage specialist will pre-qualify buyers so they can shop confidently, armed with the knowledge of how much they can afford to borrow. Everyone wants to experience that sense of privacy, stability and community that accompanies a permanent address; they wish to share special family moments and milestones in their own kitchens and backyards. Homeownership frees renters to make personal lifestyle statements and to know the satisfaction that comes from owning their own home.