Should You Buy or Rent?

If you are currently renting you may be wondering if now is the time to buy

Consider your cost for rent and the value of buying a home, and then look at the analysis below to determine if buying a home is right for you.  Key factors to consider include:

 Lower Monthly Costs – When you compare soaring rent prices with the fact that mortgage interest and property taxes are tax deductible, your monthly house payment may be lower than what you’re currently paying for rent

 Renting Versus Buying – If you are currently paying rent you can experience the tax-saving benefits of thousands of dollars in interest over the next few years through homeownership – often without dramatically increasing your monthly housing payment.

 Value – Landlords often raise rents every year but mortgage payments remain relatively stable.  You’ll build equity in your home through principle reduction and appreciation, which is a  significant component toward retirement planning for many people.

 Personal Satisfaction – Freedom, privacy, and a sense of community are all a part of owning a home.  Consider the sense of personal achievement and financial integrity will will feel as a homeowner.

Rent vs. Buy Analysis

Let's say you took out an adjustable rate loan for $130,000 at 5.75% interest, on a house with $1,500/year in property taxes and added in all of your mortgage and homeowners insurance payments.  Let's also assume that you're in the 28% tax bracket and are currently paying $850/month for rent.  Here's how it pencils out:

By owning your own home you would create tax deductions, resulting in a lower taxable income bracket, which will directly result in a higher net (take home) income!

And we're not even counting appreciation on your home, which typically is in the range of 6% per year!

For your convenience we have included a Standard Residential Loan Application Form. You will need Adobe Acrobat Reader to use it. If you don't have it on your computer click on the free link to get a copy.