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Are you tired of being under the rule of a landlord? Do you want to paint your living room red? Hang lots of stuff on the walls with nails? Have a puppy or two playing in your yard? Then it’s time for you to exercise your freedom, declare your independence and own your own home.
Along with the freedom to do with your home as you please, there are many benefits to owning your own home. When you pay rent for your living quarters, you never see that money again. Investing in a mortgage helps to build equity ownership interest in your home. When you’re paying rent there is a definite possibility that your rent may increase with each year. With a fixed-rate mortgage you know what you will pay each month until your home is paid off.
As a homeowner, you may deduct the interest you pay on your mortgage as well as property taxes and any of the costs involved in buying your home. When you rent, your landlord receives the tax advantages and you get nothing in return.
There’s a lot to be said for the pride of ownership. Owning your home gives you the stability of establishing friendships in your neighborhood and ties to the community. If you’re a parent of school-aged children remaining in a community for several years gives them education continuity.
If you’ve been considering buying a home, the National Association of REALTORS® offers a simple calculator to help you determine if owning a home fits into your budget. Many individuals find that they pay just slightly more for a mortgage than for their current rent. When making a home buying decision, you must also factor in additional costs such as real estate taxes. The calculator helps to determine estimate of an affordable mortgage payment based on your income. The calculator may be found online at:
www.realtor.com/home-finance/financial-calculators/home-affordability-calculator.aspx
If you have decided that now is the time for you to buy a home, you’re in luck. “Mortgage rates are at a historic low. In fact, lower than most prospective homebuyers have seen in their lifetime,” says Rosemary Scardina, CEO of the Lehigh Valley Association of REALTORS®. “FHA loans are available for as little as 3.5% down and with new tax incentives first-time homebuyers who are using FHA financing may apply tax credits towards their down payment.” Scardina says that all qualified first-time homebuyers may receive a tax credit of 10% of the purchase price of their principal residence with a maximum of $8,000.
The Lehigh Valley Association of RELTORS® reports that there are currently homes listed for sale from under $100,000 to over $1 million. If you’re interested in buying a home, contact a member of the Lehigh Valley Association of REALTORS® who will help you through the process. You can find a listing of members at http://www.lehighvalleyarea.com/
This article is provided courtesy of the members of the Lehigh Valley Association of REALTORS®. Visit us at www.lehighvalleyarea.com and check out our open houses at www.lehighvalleyopenhouses.biz |