if you’re ready and have the disposable income to afford the upkeep.
ADVANTAGES OF BUYING YOUR HOME
Control over housing expenses. By selecting a fixed-rate loan – either a 15, 20, 25, or 30-year mortgage, the homeowner has the assurance that the housing loan payment will not increase throughout the loan unless the loan is refinanced. Another benefit of homeownership is that after the last payment is made on the loan, the owner’s monthly housing expense will decrease dramatically. Keep in mind that the other costs associated with the home such as taxes, insurance, homeowner's association fees, and certain utilities will continue and may go up or down. You build equity. Some of each monthly mortgage payment goes toward the loan’s interest. Other portions may go to homeowner’s insurance and county taxes. The remainder pays down the loan principal. Every dollar put toward your loan’s principal represents a dollar of equity — actual ownership of the property. Further, the property will hopefully appreciate each year, adding to equity (what the house could be sold for versus what is owed on it). With the exception of certain blip periods such as the 2007 - 2009 housing bubble burst, home prices in the U.S. appreciate nationally at an average annual rate between 3% and 5% (home value appreciation in different metro areas can appreciate at markedly different rates than the national average). Improvements increase your home’s value. A homeowner can also increase a home’s value through home improvements, thus both making your home more comfortable and enjoyable while growing its loan-to-value (LTV) ratio. For instance, adding a bathroom or finishing a basement substantially increases the property’s functionality and appeal, while potentially boosting its value.
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