Get off the fence. This might be the best time to buy a home you're going to see for a while. Here's why.
1. Freedom! Owning a home means no more landlords which means not having limitations on what you would like to do with your space, such as decorating the interior or landscaping to suit your taste or even remodeling to adapt to your ever-changing life as years go on.
2. Stability. Pride, stability, and a strong commitment are all factors tied with owning a home. It is one of the biggest commitments you could make in your lifetime, and having the ability to do that will provide you with a great sense of pride and the comfort of stability rather than worrying about when a lease is up and when you will have to move again.
3. It's cheaper than renting. The tax savings associated with homeownership isn't the only way to save money. It's cheaper to own rather than to rent.
Example: Renting a home valued at $300,000 is likely to cost you in the neighborhood of $2500 per month, or $30,000 per year. To purchase that same home utilizing an FHA mortgage, it is likely to cost around $2,000 per month, saving you $6,000 per year plus all the tax deductions available to you!
4. Property tax and mortgage tax deduction. The tax code allows homeowners to deduct mortgage interest from their tax obligations, as well as real estate property taxes paid on your primary residence and a vacation property. These deductions amount to thousands of dollars in savings.
5. Prices will continue to rise. Even if you are not a renter, CoreLogic's latest Home Price Index reports that home prices have appreciated by 6.3% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.2% over the next year.
The home price lows have come and gone. Home values will continue to appreciate for the foreseeable future, not waiting any longer makes sense.
6. Mortgage Interest Rates are Projected to Increase. Your monthly housing cost is as much related to the price you pay for your home as it is to the mortgage interest rate you secure.
Freddie Mac's Primary Mortgage Market Survey shows that the interest rates for a 30-year mortgage are currently at 4.32%. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will increase by this time next year.
An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
7. Either Way You're Paying A Mortgage. There are some renters who have not year purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you're living with your parents rent free, you are paying a mortgage - how much better will you feel paying off your own home rather than paying off a landlords?
8. Forced Savings. As an owner, your mortgage payment is a form of 'forced savings' that allows you to have equity in your home that you can tap in to later in life.
