Home ownership
Home ownership is likely one of the largest purchases of your lifetime. Finding, financing, purchasing, maintaining, refinancing, and selling a home can be a complicated financial process but it is also an exciting time!
Investing in a real estate agent saves you time, keeps you organized and answers your questions as they come up. Read below to learn more about home ownership!
Great Reasons to own
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Historically, real estate has had long-term, stable growth in value and served as a good hedge against inflation.
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Money paid for rent is money that you’ll never see again, but paying your mortgage month over month and year over year lets you build equity ownership interest in your home.
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If you itemize deductions on your federal tax return, the U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes (up to $10,000 according to current tax law), and some of the costs involved in buying a home. Be sure to talk to your accountant to see if it's advantageous for you to itemize
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Building equity in your home is a ready-made savings plan. And when you sell, you can generally exclude up to $250,000 ($500,000 for a married couple) of gain without owing any federal income tax.
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Unlike rent, your fixed-rate mortgage payments don’t rise from year to year. So, as a percentage of your income, your housing costs may actually decline over time. However, keep in mind that property taxes and insurance costs may increase.
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Unlike rent, your fixed-rate mortgage payments don’t rise from year to year. So, as a percentage of your income, your housing costs may actually decline over time. However, keep in mind that property taxes and insurance costs may increase.
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Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity.
Costs of Home Ownership
Credit report fee
Appraisal fee
Home inspection fee (optional)
Down Payment (can be a gift from family member)
Closing Costs (can range from 2%-6% of purchase price)
Purchase price or Monthly Mortgage Payment
Homeowners Insurance
Property taxes (November/February)
Supplemental taxes (typical one time costs with new builds)
Mortgage Insurance (if down payment was less than 20%)
Homeowners Association Fees (if part of an HOA)
Home Maintenance
Furniture and appliances