Why should I look into buying my first home? Let me give you 4 quick reasons:
- Increase net worth – In a comparison of renters versus homeowners, the Federal Reserve Board of Consumer Finance found that the average net worth of renters was $4,000, while that of homeowners was $184,400. A home plays a huge part in your financial future.
- Tax deduction – One of the largest tax deductions available is the amount of interest paid on a mortgage. On a $150,000 loan, at a 5.5% interest rate, you can write off as much as $8,000 as deductions. Consult your tax adviser to determine your status.
- Long-term Appreciation – Over the last few years, home prices have corrected and become more affordable. While that is good news for buyers, it has overshadowed the long-term appreciation on a home’s value. From 1950-2002, US home prices appreciated at an annual growth rate of 4.8%. If you only use a 3% appreciation rate on a home purchased today at $150,000, that home will be worth $364,000 in 30 years.
- The government is handing out $8,000 to first-time buyers if they purchase a home and keep it for 3 years.
_______________________________________________________________
Brandon is a branch partner at Alcova Mortgage. He enjoys doing his taxes, firewalking and competitive eating, but not necessarily in that order. You can reach him at brandon@alcovamortgage.com, or 877-552-7150.