Charles McShan - untitled

buyers must be prepared. You’ll need to consider the overall price of the home, the down payment, closing costs, mortgage payments, maintenance costs, property taxes, homeowners’ association fees, and more. You can’t simply compare a month’s rent to a month’s mortgage payment. You must be prepared for all the costs of homeownership. • Down payment: The down payment refers to the lump- sum payment that funds your equity in the property. The amount varies, but in the U.S., 20% of the purchase price of the home is generally the norm, the preferred amount, and what will get you the best rate. • Mortgage payments: A monthly mortgage payment includes both interest as well as loan principal, and generally, any homeowner’s insurance and prorated property taxes. Some monthly mortgage payments are fixed; others are variable, depending on the type and terms of the mortgage loan.

DO YOU NEED YOUR HOME AS A RETIREMENT PLAN INVESTMENT?

A 2015 Gallup poll reported that, for the second year in a row, Americans named real estate as the best long-term investment, more than savings accounts, stocks, and bonds. Homeownership allows you to build equity that you can liquidate in retirement for downsizing. It’s important to pay close attention to the housing market: prices can rise and fall, and the value of your home can change.

ARE YOU EMOTIONALLY PREPARED?

Homeownership has many advantages over renting, but it can cause stress, and you need to be emotionally prepared to handle it. Stress that’s related to owning a home can include a change 7

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