Why Buy A Home |
| Big Tax Savings | This is the best known benefit derived from owning a home. The interest you pay on a mortgage is tax deductible, which will save you a lot of money come tax time. Here is an example: If you make $30,000 per year and you have a $100,000 mortgage you will have approximate $8,400 in interest to deduct. That equates to about $2,600 in tax savings, or a $215 monthly raise. | ||||||||
| Equity Accumulation | Life is not getting any cheaper, and the inflation that causes prices to rise also causes the value of your home to increase. The sooner you start your equity savings account (you buy a home), the sooner you start accumulating equity. Every month a portion of your payment is applied to the principal balance of the loan and your equity grow. Your equity is basically a savings account that you can borrow against, or liquidate by selling the home. When you rent the owner gets the equity. Click here to see how much it really cost to rent. | ||||||||
| Predictable Costs | For most of us housing is the largest single expense in our budget, so being able to lock in that item is important to our financial well being. With most mortgages the payments stay basically the same over the life of the loan. This is especially evident in the later years of the loan when typically your income has increased, but your housing expense is still essentially the same. | ||||||||
| Rates Are Great | And you may have to wait a while to see them
this low again. Let's put this in dollar terms, look at the table below for $100,000
mortgage:
The difference between 7.5% and 9.5% is $142 per month. If you are able to buy, this is probably a very good time to do so. |
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| Home Sweet Home | In today s hectic world we all need a place to call our own. When you own a home you never have to worry about a landlord. You decide what color to paint the walls, and if you don t like it - you can change it. The value of a stable home place is hard to measure. | ||||||||
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Other Books In the Library Main Library Page <> Down Payment Stratagies <> Chart of Interest Rates <> Questions To Ask A Lender <> What Are Lenders Looking For? <> Why Buy A Home <> VA Loans <> FHA Loans <> Settlement Cost Handbook <> 3 Things To Avoid <> How To Get Out Of Debt <> Understanding How To Use Credit <> Credit Repair <> Appraisals <> Title Insurance <> Credit Scores <> Automated Underwriting <> |
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