Financial Reasons to Buy NOW!

timthumb.php

There are a number of personal and emotional reasons to buy a home. But there are also some strong financial reasons to make the investment. Here are just a few of those reasons to share with your clients:

Increase Net Worth: Few things have a greater impact on net worth than owning a home. In a comparison of renters versus homeowners, the Federal Reserve Board of Consumer Finance found that the average net worth of renters was just $4,000 compared to homeowners at $184,400.

A Big Tax Deduction: One of the largest tax deductions available is the amount of interest paid on a mortgage. In fact, a $150,000 home at a 5.50% interest rate can add up to approximately $8,000 in first year’s interest. This amounts to a significant savings – effectively reducing the amount of a homeowner’s monthly mortgage payment.

Long-Term Appreciation: Over the last few years, home prices have corrected and become more affordable. While that’s good news for potential buyers, it has overshadowed the long-term appreciation of a home’s value. The reality is, despite market ups and downs between 1950 and 2002, US home prices appreciated at an annual growth rate of 4.8%. Even if you calculate a modest appreciation of 3%, a home purchased today for $150,000 will grow in value to $364,000 over 30 years.

Mortgage Interest Rates*
Rates as of Friday, 19th September, 2014:

Term

Conforming

APR

Payment per
$1,000

30-Yr. fixed

360

4.500%

4.607%

$5.07

15-Yr. fixed

180

3.625%

3.727%

$7.21

30-Yr. FHA

360

4.125%

5.725%

$4.85

 Give me a call for any of your Mortgage questions. 

Screen Shot 2014-09-23 at 2.00.04 PM

Estimated monthly principal and interest payment for a loan amount of $200,000: $1,014 for 30-Yr. fixed, $1,442 for 15-Yr. fixed and $970 for 30-Yr. FHA. Rates are subject to change without notice. Conforming, Jumbo and High Balance Conforming rates are for 80% loan to value (20% down) and assume a front debt to income ratio of 28% and total debt to income ratio to 36%. FHA rates are for 96.50% loan to value (3.5% down) and assume a front debt to income ratio of 31% and total debt to income ratio of 43%. Each loan type assumes owner-occupancy, escrow for tax/insurance and a mid FICO credit score of 740 or above. Monthly payments are estimates only and do not include taxes, insurance and mortgage insurance (if required); actual monthly payment will be greater. Certain restrictions apply. This is not a commitment to lend. Applicants must qualify. Universal American Mortgage Company, LLC dba Pinnacle Mortgage Group – Company NMLS #1058. AZ Arizona Mortgage Banker License #0118366. CA Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act RMLA #4130443. CO Brian T Rindels, NMLS #10725, 303-716-9000, Supervised Lender License #987996, Regulated by the Division of Real Estate. NM Regulation and Licensing Department Mortgage Loan Company. OR Mortgage Lending License #ML-5079-41, 1761 Cowan, Suite 206, Irvine, CA 92614; Mortgage Lending License #ML-5079-40, 32605 Temecula Parkway, Suite 310, Temecula, CA 92592; Mortgage Lending License #ML-5079-42, 31351 Rancho Viejo Road, Suite 202 & 203, San Juan Capistrano, CA 92675; Mortgage Lending License #ML-5079-39, 3605 S. Teller Street, Lakewood CO 80235. TX Branch NMLS #172195, 1761 Cowan, Suite 206, Irvine, CA 92614; Branch NMLS #1173486, 32605 Temecula Parkway, Suite 310, Temecula, CA 92592; Branch NMLS #1173503, 3605 S. Teller Street, Lakewood CO 80235. WA Consumer Loan License #CL-1173503. NMLS consumer access verification<http://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1058>

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s