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Mortgage payments are a reality many individuals and families face, especially as an important first step toward homeownership. Making timely and regular payments is an important part of maintaining and improving your personal financial health. With the right strategies and effort, mortgage payments can also bring about a number of financial advantages.

Paying on Time: According to the Credit Scores & Reports page from Credit Karma, your payment history tops their list of factors impacting your personal credit score. Making timely mortgage payments can demonstrate your consistent commitment to meeting your financial obligations and can help you maintain or even improve your credit score over time. A higher credit score may translate to improved chances for loan approval for future projects, such as home improvement or financing a car.

Improving Your Equity: Every mortgage payment you make also brings you closer to building equity in your home. As you pay off your mortgage, a greater percentage of your home’s value builds up, as money toward your home’s ownership is paid down; this can become a considerable asset in time. The higher the equity in a home, the more money a home owner can access through home equity loans and other products.

Creating Homeownership Benefits: Though homeownership can bring certain costs at the outset, over time, it has been found to be an important bridge to economic stability and success. Studies from the National Association of Realtors show that homeownership can enable greater wealth accumulation due to the continued rise of home values. Additionally, the Internal Revenue Service (IRS) offers a number of tax deductions for mortgage payments, a benefit homeowners can take advantage of annually.

Making regular and on-time mortgage payments can be critical to achieving many financial goals. Improving your credit score, building equity, and gaining certain tax benefits can be some important advantages of making regular payments toward a mortgage. Consider a financial plan to help you maintain a steady payments schedule, and seek out advice from a lender to maximize the potential of your mortgage investment.