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Buying your first home is a big decision. It can be scary and exciting. While homeownership may not be the right choice for everybody, it does make sense for most. If you are thinking about purchasing or building a home of your own? Keep these critical considerations in mind:
Financial Benefits:
1. Dramatic Tax Benefits: Homeowners may deduct the interest portion of their mortgage payments. This lowers the amount of taxes you pay. So even if your monthly payment goes up a little bit when you buy a home you may save that much on your taxes in the form of a larger refund at the end of the year. Keep in mind that mortgage payments don’t go up every year like rent tends to do. What sounds like a large payment now will probably be less than you will be paying for rent in a few more years.
2. Amortization: Mortgage payments are made up of two parts, interest and principle. The principle portion of your payment reduces the amount of money that you owe on the house. So every month the amount you owe is a little less, which is like money in the bank.
3. Appreciation: Real Estate values generally increase over time. If you are renting, the landlord gets the benefit of the rising values. If you own the house you get the benefit of the increase. You see this benefit when you sell or refinance to pull cash out.
4. Sweat Equity: When you own the property, you have the freedom to make improvements. Making improvements increases the value of your property even more, again it's like money in the bank.
In addition to all of these financial benefits, there are dozens of other more personal benefits like greater privacy, freedom of how to decorate, personal satisfaction, owning a piece of the American Dream, and not having to deal with a landlord. Of course there are many more but you get the idea.
Can you really buy a home with "No Money Down?"
Yes! Typically homebuyers will need some money for a down payment and closing costs. However, with today's broad range of loan options, having a lot of money saved for a down payment is not always necessary. There are programs through FHA that allow for as little as 3% down payment (that's $4,500 on a $150,000 house.) Evergreen Efficient Homes, LLC has a builder incentive program that can lower your out of pocket to zero. Click here to find out about how Evergreen Efficient Homes, LLC may be able to help you buy a home with No Down Payment
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