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Buyer's
Guide
Buying
vs. Renting
Trends in home prices, personal income and mortgage rates,
combined with the tax advantages of home ownership, make this
an excellent time to turn the home of your dreams into a realty.
If you're thinking of buying a home owndership, make this
an excellent time to turn the home of your dreams into a reality.
If you're thinking of buying a home, you've probably already
asked yourself, "can I afford to buy?" Another good
question to ask is, "can I afford to continue renting?"
No matter what you're currently paying for rent, your total
cash outlay over a period of several years will probably add
up to a much higher total than you may have realized. The
following chart shows how quickly the rent payments you are
making add up, figuring in what this money would have invested
at 10 percent interest. With the money you are currently spending
on rent, you could be building equity in your own home. Keep
in mind, too, that over the years your income most likely
will increase faster than any increase in your mortgage payment.
Rent payments, on the other hand, tend to increase - right
along with your paycheck.
Rent
Per Month |
Rent
Payment
10 Years |
Rent
Payment
20 Years |
Rent
Payment
30 Years |
| $400 |
$
81,938.00 |
$303,748.00 |
$ 904,195.00 |
| $500 |
$102,422.00 |
$379,684.00 |
$1,130,244.00 |
| $600 |
$122,907.00 |
$455,621.00 |
$1,356,293.00 |
| $700 |
$143,391.00 |
$531,558.00 |
$1,582,341.00 |
| $800 |
$163,876.00 |
$607,495.00 |
$1,808,390.00 |
Mortgage
Rates
As
a rule of thumb, a one-point drop in mortgage rates means
that half a million more families will qualify for affordable
financing. Yours could be one of them! Rate for conventional,
30-year fixed-rate mortgages are now at the lowest point we've
seen in years, increasingly popular alternate forms of financing
may make your loan even more affordable. Your Real Estate
Agent or broker can provide information on the types of financing
plans available to you.
Homeowner
Tax Advantages
When you're figuring out how much you can afford to commit
to monthly mortgage payments, don't forget the tax advantages
of home ownership. Both property taxes and interest payments
on a mortgage for an owner-occupied home are currently tax
deductible. In the early years of a typical mortgage, all
but a small percentage of each monthly payment is used to
pay off the interest on the loan. This means that as a homeowner,
your annual taxable income could be substantially reduced
by deducting the payments you make on property taxes and yearly
mortgage interest. Ask your CPA, attorney or tax preparer
how buying a home now would affect your tax situation at the
next filing deadline on April 15th.
Home
Value Appreciation
In addition to tax advantages, you can also benefit from any
increase in the value of your home both through appreciation
and improvements you add for your own comfort and enjoyment.
You
Can Make Home Ownership a Reality
Take a good look at your personal financial situation in comparison
to housing price trends and mortgage plans available in your
community. You will probably discover that you are closer
to home ownership than you realized; and that, in fact, this
is the time for which you've been waiting.
See
Your Real Estate Professional
Buying a home is probably one of the biggest investments you'll
ever make. When it's your first home, it is especially important
that you seek qualified assistance. George and Cathy Castleberry
have the experience and expertise to help you find and purchase
the home of your dreams. Contact
George or Cathy today!
 Overview
of the Buying Process
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