Are you unsure about becoming a HOME BUYER?

Thinking that you can't afford to BUY a home?

Are you worried whether home buying is a good INVESTMENT?

Buying a first home can be an intimidating process. But the first step is making those first decisions: I want to own my own home; I can afford to own my own home; owning my own home makes sense for me financially and emotionally. If you are struggling with those first decisions, here are some facts that might help you make that first step towards becoming a homeowner.

You Can't Afford NOT to Buy a Home!

   Over the ten years, the cost of rental housing in the U.S. has increased an average of 3% per year. That means that an apartment or home renting for $1,000 per month will cost more than $1,300 a month in ten years. If you rent the same home for ten years, the total amount you would pay for rent will equal $137,567!

Tax Advantages of Owning a Home Result in Savings

   None of that $137,567 is returned to you, either through savings or as an investment. Home-ownership, on the other hand, has tax advantages over renting a home and those advantages can help you save money. Unlike your monthly rent, part of your monthly mortgage payment "comes back to you" in tax savings. Here is an example:

   You purchase a home that costs $210,000. Your down payment is $10,000, (plus closing costs - expenses incurred to actually process the transaction). You finance the balance with a 30-year fixed rate mortgage at 6.5% interest. Your monthly payments, (not including utilities, maintenance, insurance, etc.) are:

Monthly Mortgage  & Tax Payments                                Total Annual Cost

   Mortgage                                             $1,264                                               HOMEOWNER            RENTER

   Property Tax (@1.25% tax rate)                 230       Annual Mort./Rental Payment     $15,168              $12,000   

Total Monthly Payment                        $1,104      Real Estate Taxes                         2,760                        0

Tax savings per month, (30% income tax bracket)      Mortgage interest deduction         -3,864                         0

   Mortgage interest tax deduction                  $322     Property tax deduction                   -816                         0

   Property tax deduction                                  68     Mortgage principal accumulation   -2,232                         0

Total Monthly Tax Savings                       $390    Appreciation                                -9,450                         0

Total Monthly Cost After Tax Savings   $1,104    Total Annual Cost                   $1,566              $12,000

You actually save $390 a month by owning your own home. On a yearly bases, savings is even more dramatic:

Home-ownership is a Good Investment!

   For the majority of Americans, their home is their largest financial asset and a major player in their investment portfolio. It's a good thing, too, since stock market value has declined since 1998, while home price appreciation has increased. The NATIONAL ASSOCIATION OF REALTORS® estimates that home value rises, on average, by 4.5% per year. That is a steady return on investment; one's own home is a much less volatile asset than stocks, bonds or mutual funds.

Isn't it about time you realize the financial benefits of home ownership? I am here to help assist you "every step of the way". Call me today 520-705-0534!