A. Advantages of Owning a Home.
B. Which Loan Program is better for you.
A. Advantages of Owning a Home.
* A home is usually a sound investment.
When you carefully choose a home you can afford, the payoffcan be great. Each month when you make your house payment,
you're building equity in a place of your own. Equity is the
portion of the property that you can actually own through your
payments versus the portion that you still own the mortgage
lender. The longer you stay in your house, the more equity you
will have. Unlike most things, buying a house can actually
increase the value as time passes, building more equity. (But
remember: there is no guarantee that your home's value will
grow, sometimes your home's value will go down)
* Home ownership offers great tax advantages.
The mortgage interest and real estate taxes are tax deductible.
That allows you to subtract part of housing related expenses
from your taxable income, which could reduce your tax bill.
* A first home often leads to a better second home.
As you build up equity in your current home, it is usually
easier to afford another home in the future.
* You are better able to plan your housing cost.
Rent increases are unpredictable and usually beyond your
control. When you buy a house with a fixed rate loan (the type
offered through Camelot's Home buyer's Program), you know
exactly what your house payments will be for as long as you
have the mortgage loan.
* You gain the satisfaction and security of ownership.
As a homeowner you can decorate and improve your home the
best way suits you. Owning a home also may give you a new
sense of pride in your surroundings. You and your family may
feel stronger ties to your community.
B. Which Loan Program is better for you.
When you select a loan program:
a. consider how long you will be in the house. If you think you
will be transferring in the next 5 to 7 years, you may be better to
take a 5-year fixed or 7-year fixed. If you are a first time home-
buyer, it is best to take a 30-year fixed to get the feel of your
budget.
b. If you are buying a home and your going to retire then you
want to consider in taking a 15-year loan so the home will pay
the home off soon. If you are getting a "jumbo loan" you may
be better to take an adjustable rate. One loan you don't want to
take is the negative amortized loan.
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