In a recent post, 1st Loan Modification of America outlined three reasons for buying a home as a good investment. To follow up, 1st Loan Modification of America offers four more excellent reasons to become a homeowner, even in today’s economy.

First of all, 1st Loan Modification of America notes that as long as a homeowner has resided in a home for two of the past five years, he or she can exclude up to $250,000 for an individual ($500,000 for a married couple) of profit from capital gains. Considering that the homeowner does not have to buy a replacement home and that there are no age restrictions, 1st Loan Modification of America recognizes this as a great value.

In addition, 1st Loan Modification of America reveals that if a homeowner receives more profit than the allowable exclusion upon sale of a home, that profit will be considered a capital asset. 1st Loan Modification of America explains that this holds true as long as the home was owned for more than one year — and capital assets receive preferential tax treatment.

1st Loan Modification of America recommends utilizing the amortization process, wherein the percentage of principal in a mortgage payment increases every month. 1st Loan Modification of America estimates that on average, each $100,000 of a mortgage will reduce in balance the first year by about $500 in principal, bringing that balance at the end of the first 12 months to $99,500.

Finally, 1st Loan Modification of America says that for many homeowners, it makes sense to pay off credit card debt (often rated at 18% to 22% and non-deductible) with a home equity loan. Equity loan interest is often much lower and it is deductible. 1st Loan Modification of America adds that homeowners can borrow against a home’s equity for a variety of reasons such as home improvement, college, medical or starting a new business, and 1st Loan Modification of America encourages homeowners to consider it for debt relief as well.

For more information contact 1st Loan Modification of America, LLC at 702-227-9660 or email them at modifications@1stloanmodificationnow.com.