Essential Information on the Benefits of Homeownership

As a Real Estate and Mortgage professional for 25 years, I have seen the market rollercoaster more than once! What I have not seen, however, is a better time to be a first time buyer!  Prices and rates are configured right now to make this the “most affordable market in 40 years” according to several market experts including the National Board of Realtors. Here are some very good reasons why buying your first home now makes sense.

RENTING

The average monthly rent is $1,500.00 with an expected yearly 5% rent increase.  After 5 rental years, your cost is nearly $100,000! If the renter has made any improvements to the property (decorating, etc) they receive no tax benefit for their efforts. (Oh yeah, your Landlord thanks you!)  This means you, as a renter, have spent an average of $1,658 a month for over 5 years!

HOMEOWNERSHIP 

There are still several programs available today for qualified buyers with NO MONEY or LOW MONEY DOWN!!!  MHFA (Mass Housing Finance Authority), VA (Veterans Administration loans), USRDA (US Rural Development Authority), FHA (Federal Housing Authority) all offer programs designed to help buyers purchase with low down payments and low closing cost options.  It is actually possible to purchase a home with the same out of pocket cash as you would need for a first/last and security deposit on a rental!

As an example, for a purchase price of $200,000 and a loan amount of $200,000 with a 30 Year fixed, no points, first time buyer rate of 5% (APR of 5.125%), the monthly principle and interest payment would be $1,073.64.                               

Add monthly taxes and insurance of approximately $300.00 and your monthly house/condo payment is $1,373.74

And let’s not forget about the $8,000 FIRST TIME BUYER TAX CREDIT!!!

Add in ANTICIPATED APPRECIATION of 2% annually and you can expect an average investment return of over $30,000.00 in 5 years!  (This is only an example) If you would like me to give you a free personal PRE-APPROVAL, call me at (781) 801-0939 or email me at deb.colanino@prospectmtg.com.  I look forward to helping you find the right mortgage.