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“The
American Dream”
For
most people, buying a home is
one of the most important
decisions they will have to
make. This decision should not
be taken lightly. This is an
excellent time to consider
purchasing a home because of
interest rates and tax
advantages of owning a home.
Buying vs. Renting
The
big question many face is “Can I
afford to purchase a home?” A
more important question to ask
is “Can I afford to continue to
rent?” Making monthly payments
on a mortgage increases your
equity because you are buying
something tangible, unlike
paying monthly rent payments.
Homes do not always appreciate
at the same rate, but real
estate has historically kept
pace with the rate of inflation,
and has at times appreciated
faster. Another thing to
remember is that it is more
likely your income will increase
faster than your mortgage
payment, but rent payments tend
to change faster and at greater
amounts to go with wage
increases.
Mortgage Rates
Mortgage rates for a
conventional, 30-year fixed rate
mortgages are at a reasonable
range now. There are also other
affordable forms of financing.
Your real estate agent can
provide information on types of
financing plans.
Homeowner Tax Advantages
Property taxes and interest
payments on a mortgage for your
homestead (owner occupied home)
are tax-deductible.
Home
Value Appreciation
When a home is
sold for more than was paid
originally, the gain is not
taxable if another home is
purchased for a price equal to
or greater than the price of the
home sold. You can recognize a
tax-free gain of up to $120,000
if you are over the age of 55.
If this is your first home it is
important to seek qualified
assistance to get the help you
will need to purchase the home
of your dreams!
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