Owning a home is a major milestone. For some, it can feel out of reach. For others, it's something they've spent years saving and planning for. Either way, buying a home comes with many considerations — from your down payment and monthly mortgage payment to choosing the right location, understanding property taxes, and planning for your long-term goals.
While today's housing market looks different than it did just a few years ago, homeownership can still provide lasting financial benefits and may be more attainable than you think.
Is Buying a Home Worth It?
Quick answer: For many people, yes. Homeownership can provide more than just a place to live — it can also help you build equity and grow your net worth over time. While every financial situation is different, understanding your options can help you decide whether homeownership fits your plans.
Homebuying Looks Different Today
From shifts in the housing market to economic trends, buying a home today has changed for several reasons. According to Erica Pallardy, Mortgage Loan Officer at First Mid, “One of the biggest changes is age. Homebuyers are waiting longer and buying homes later in life when they are more established. This also means they are more knowledgeable, and many people have taken time to research their financing solutions, explore assistance programs, and save for a down payment.”
More young adults are waiting longer to buy a home. According to a recent Federal Reserve survey, 49% of people under age 30 said they lived with a parent.* Rising housing costs and the increasing cost of living have caused many buyers to delay homeownership.
While today's market has changed the path to homeownership, it doesn't necessarily change the destination.
Could Your Rent Be the Same as Your Mortgage?
Before assuming homeownership is out of reach, compare the cost of owning with your current housing expenses. Depending on your budget, financing options, and local housing market, a monthly mortgage payment may be closer to your rent than you think.
"People may be pleasantly surprised when they compare the affordability of mortgage payments versus renting," says Pallardy. "The best thing you can do is have a conversation with someone you trust before getting pre-qualified. It gives you a better understanding of where you stand, what your next steps might be, and whether you qualify for down payment programs that don't require 20% down."
While a monthly mortgage payment may be similar to rent in some situations, one important difference is that homeownership gives you the opportunity to build home equity over time.
First Mid Story: Through our partnership with the Federal Home Loan Bank, one Iowa family received $15,000 in down payment assistance, helping reduce their upfront costs so they could focus on settling into their new home instead of worrying about a down payment. Read about their journey to homeownership.
How Homeownership Supports Your Financial Goals
We often think about the memories that come with buying a home — putting down roots, celebrating birthdays in the backyard, or watching your family grow in a space that's truly yours. But homeownership is more than an emotional investment. It can also be a financial one.
Building Home Equity: What It Is and Why It Matters
Home equity is the difference between your home's current value and the amount you still owe on your mortgage. As you make mortgage payments, the principal portion reduces your loan balance, helping you build equity over time. If your home's value increases, your equity may grow even more.
Every mortgage payment typically includes principal, which pays down your loan balance, and interest, which is the cost of borrowing money. As your loan balance decreases—and if your home's value increases—you build more equity in your home.
Pallardy reminds us, “When you’re renting, you’re helping someone else pay their mortgage. With a mortgage, your money over time can come back as equity to help pay for college or weddings, pay off high-interest debt, or provide a down payment on your next home.”
Putting Your Home Equity to Work
As your equity grows, it can become a valuable financial resource. Depending on your financial needs, your home's equity may help you:
- Finance home improvements
- Help pay for college or education expenses
- Cover major milestones like a wedding
- Purchase your next home
- Provide flexibility during unexpected expenses
- Invest in future opportunities
One of the unique financial advantages of homeownership is that the equity you build doesn't just stay in your home—it may become a financial resource you can use when life changes.
When you’re ready to put that equity to work, you may be able to access a portion of it through a home equity loan or Home Equity Line of Credit (HELOC). Compare the two to determine which best fits your needs and use our HELOC Calculator to estimate how much equity you've built.
Getting Started on Your Homebuying Journey
Buying a home starts with a conversation — not a commitment. Meeting with a mortgage lender early can help you understand your budget, estimate a monthly payment, and learn about financing options, including down payment assistance programs. Even if you're not ready to purchase today, having a plan can help you feel more prepared when the timing is right.
Pallardy reinforces, "You don't have to have everything figured out before reaching out. Sometimes the first conversation is simply about understanding your goals and what homeownership could look like for you. Having someone local who knows the market, the community, and the resources available can make a big difference."
A home is where memories are made — from backyard campouts to family movie nights — and over time, it can help build a stronger financial foundation for whatever comes next.