Waiting to Buy Could Cost You $,$$$'s
If you are currently renting an apartment or house, and are waiting for the perfect conditions to present themselves to purchase a home, it probably won't come. Even if it does what you may have sacrificed in additional rental payments and lost income tax deductions will more than exceed what you may have gained in a lower interest rate, if the interest rate were indeed lower.
For example, a family renting a two-bedroom condo for $1,450. per month will spend $17,400. on housing for the year, and it is all down the drain, no home equity, and no tax benefit. If they invest the same amount in a new home at $195,000. they will earn at least $2,000. in equity, and that's even if the home doesn't appreciate one penny during that year.
In addition they will be able to claim in the neighborhood of $15,000. for deductions of mortgage interest and property taxes on their income tax return.
If the family continued renting another five years, (waiting for that perfect time) they would put themselves in the hole another $87,000., while owning the home would boost their wealth by over $20,000. If the home they buy would appreciate at just 3% annually, well below the government's most recent national average, they would stand to gain another $30,000+ in equity.
How best to tell how you would fare.....contact a mortgage lending professional soon, and ask about the financing options that best fit your families' needs.
Brought to us by Bradford Mortgage Company, Asleigh Sumlin, Consultant 704-373-2289
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