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Renters Have Much to Gain by Pursuing Home Ownership
Buying a home vs. renting is a big decision that takes careful
consideration, as most mortgage consultants will agree. But the
rewards of home ownership are great. For many years, purchasing
real estate has been considered an extremely profitable
investment. It is an achievement that offers a sense of pride,
financial stability and potential tax advantages.
Yes, there are certain responsibilities associated with owning
a home. Landlords will often argue the benefits of renting, and
for obvious reason. If you are renting, you're helping them make
their mortgage payment.
The numbers are staggering if you look at it this way. If you
are paying $1,000 per month for an apartment, and you know your
rent will increase 5% every year, then over the next five years
you will pay your landlord $66,309. If you are currently renting
a house, you may be paying much more than that each month. Either
way, you gain no equity by shelling out this monthly housing
expense and you certainly won't benefit when the property value
goes up!
However, if you were to purchase your own home or condominium,
you would be well on your way toward building equity within that
same five-year period. By choosing a fixed-rate loan program, you
can have the comfort of knowing that your monthly mortgage
payment will never go up. In fact, you would have the option of
refinancing to a lower interest rate at some point in the future
should interest rates drop, and this would cause your monthly
mortgage commitment to go down.
In addition to building equity, there are tax advantages that
come into play with home ownership. Depending on your tax
bracket, owning a home is often less expensive than renting after
taxes. Interest payments on a mortgage below $1 million are
tax-deductible, and your mortgage consultant should help you
evaluate the tax advantages of various loan scenarios, and share
this information with your tax consultant to glean feedback on
your behalf.
To find the loan program that is right for you, your mortgage
consultant will need to evaluate your monthly household income,
current assets and savings, as well as any monthly obligations
you may have for credit card payments, car payments, child
support, etc. These prequalification factors, along with the
report of your credit score, will determine how much house you
can afford and what interest rate you will pay for financing. It
is also important to let your mortgage consultant know what your
future goals are, because this will help narrow down which loan
option is the best fit for your long-term needs.
There are many different types of loan programs available,
including "low" and "no" down payment mortgage programs. These
types of programs require the borrower to provide less than 3
percent of the loan amount as down payment. FHA lenders rule that
the mortgage payment, including principal, interest, taxes and
insurance (PITI) should not exceed 31 percent of your gross
income, and the PITI plus other long-term debt (car payments,
etc.) should not exceed 43 percent of your gross income.
Housing is an expense that takes a big bite out of the monthly
budget. If you are a renter and feel that "home" is more than
just someplace to hang your hat, think about the advantages of
purchasing real estate. It may be time to take the step into
building your personal net worth as a home owner.
Mical Johnson is affiliated with Rock Financial, Inc., a
Licensed Correspondent Mortgage Lender, Florida Department of
Finance. Mr. Johnson hosts Home Buyer's Seminars which are open
to the public each month in the TampaBay area in Florida. Seating
is limited. To reserve your seat at the next event, call
813-833-2568 to RSVP and obtain a free copy of Mr. Johnson's Home
Buyer Handbook. You can also contact him at http://www.TampaMortgageGuy.com
He is also a contributing author at http://www.Debt-Free-Personal-Finance.com
 MORE RESOURCES updated Thu. February / 09 / 2012
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Mortgage-refinance bill a dangerous dealArizona Republicby Robert Robb, columnist - Feb. 10, 2012 12:00 AM State Sen. Michele Reagan wants to help out underwater homeowners in the worst way. And she has succeeded with SB 1451 -- it's hard to imagine a worse bill. Reagan proposes to establish a state agency ... |
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AgedLeadStore.com to Add 1100000 Aged Mortgage Refinance LeadsMiddle East North Africa Financial NetworkCOM, January 26, 2012 ) Baltimore, MD AgedLeadStore.com is increasing its value for its customers by adding 1.1 million aged Mortgage Refinance Leads in February. This is important as many people depend upon their ability to refinance to make progress ... |
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RELATED MORTGAGE AND REFINANCING ARTICLES:
Home Mortgage Loan
Refinancing Online - 3 Tips on Refinancing Your
Home
When refinancing your home, it's helpful to know a few
things about refinancing. When you refinance, you usually
pay off the old loan and sign for a new loan, whether you
are refinancing your 1st mortgage, second mortgage or home
equity loan.
Desperately Seeking Good
Leads, The Adventure Driven Loan Officer
As loan officers, the word "lead" is by far one of the most
common words we use during the day, it is the topic of many
of our conversations, it is praised and cursed, it is good
and it is bad, it is loved and it is hated, on bad days it
is hard to find, and on good days it falls right into our
lap.The lead is a specter that haunts us constantly, we
can't get enough of them, no mater how many or how little
we have, we are constantly searching for more.
Mortgage
Marketing
W. Edwards Deming said "Marketing and innovation are the
only source of value in business, everything else is a
cost".
Internet & Mortgage
Calculations
"You've been approved!" The words you have always wanted to
hear when you filled out the home loan application. It
swirls through your mind the opportunities and memories you
will cherish in your new home.
Getting a Home
Improvement Loan: What Your Bank Needs
The popularity of stores like Home Depot and Lowe's show
how many homeowners are jumping on the home improvement
bandwagon. Maybe you're thinking of redoing part of your
house as well.
A Guide to Finding Cheap
Homeowner Loans
If you're actively looking for cheap homeowner loans, there
are several things that you should take into consideration
to make sure that you get the best loan for your
money.Before taking one of the loans offered to you, you
should take the time to understand how cheap homeowner
loans work, make sure that you've explored all of your loan
options, and shop around for the best loan rate that you're
eligible for.
Know Your Mortgage
Options
While trying to find the lowest rates, many homeowners fail
to examine the type of mortgage, and which type of mortgage
is best suited to their needs. Whether you are buying a new
home or refinancing, it is important to understand the
different mortgage types, and evaluate which one best meets
your needs.
Buying a Home With Bad
Credit - Why a Recent Bankruptcy Will Not Stop You From
Getting Approved
Buying a home with bad credit is possible with the help of
a subprime lender even if you have a recent bankruptcy or
foreclosure. These mortgage lenders specialize in financing
home loans for people with poor credit.
Before You
Buy
Before you start looking for a home, figure out what you
can realistically afford to pay per month. Check out the
market in the area you want to buy.
Flexible Mortgage
Guide
Here is a useful flexible mortgage guide. Flexible
mortgages are loans which allow you to increase or decrease
the size of your repayments within certain limits.
A Guide to Getting Bad
Credit Home Improvement Loans
You might be wanting to look into bad credit home
improvement loans but are unsure of where to start. After
all, how do you get a good loan when your credit isn't the
greatest?What you probably don't realize is that there are
a number of lenders who offer bad credit home improvement
loans, which use the equity of your home or other real
estate to determine the amount of the loan with no
additional collateral needed.
Mortgage Refinancing -
Does Size Matter After All?
Hopefully your ego has never had to experience the words,
"It's okay honey. Size doesn't matter.
Are You Ready for a Home
Mortgage Loan?
Buying a Home and committing to a Mortgage can be very
scary! A home mortgage loan is the largest debt that most
Americans will take on in their lifetime. As such, making
the decision to take out a mortgage is not one that most
first time homebuyers take lightly.
Mortgage Debt
Elimination
The prospect of mortgage debt elimination is something that
many Americans are dealing with today. If you are concerned
about your current debt situation, constantly trying to
eliminate debt from your life, you are not alone.
Should You Refinance
Your Mortgage if Interest Rates Drop?
Mortgage refinancing is when you take a mortgage of a
certain interest rate and term length, and change it for a
different interest rate and term. If you are looking to
refinance your home loan it is usually done when rates have
dropped considerably therefore making it advantageous to do
so.
What is a Buy To Let
Mortgage?
A buy to let mortgage is a mortgage on a property which is
to be let out or rented, rather than occupied by the owner.
A buy to let mortgage is exactly as it sounds - a mortgage
that allows you to buy a property in order to let if out to
a tenant.
Reverse Mortgages - A
Tax Free Income For Senior Citizens
I fully realize if it sounds too good to be true, it
probably is and There Is No Such Thing As A Free Lunch
(TANSTAAFL) immediately jumped into your head when you read
the title of this article. However, if you are 62 or over,
you may have just found the goose that laid the golden egg.
FHA Home Mortgage
Purchase or Refinance Loan - Why You Might Consider Getting
an FHA Loan
Most borrowers have heard of FHA home loans. They are very
common.
What is a
Mortgage?
A mortgage is a loan, usually from a bank, finance company
or building society to help you buy your home. A mortgage is
a loan, from a bank or building society that is secured
against your house or flat.
Home Mortgage Loan
Pre-Approval Online - Keys When Applying For A Mortgage
Online
Applying online for a mortgage is very fast and easy. Just
make sure of a few things before you start to look for
places to apply to.
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