Yes. Buying a home is a big decision. A big commitment, too. But if you think it through, clearly understand your financial situation, and you’re ready for the short- and long-term responsibilities, it can be one of the most rewarding decisions you’ll ever make.
Build equity:
Every monthly mortgage payment you make is part interest and part principal. The principal is what you owe on the loan and it goes directly
towards your home’s equity. It’s like investing in yourself. Which is a lot better than 100% of your rent payment going to the
landlord. Plus, whenever home values increase (and historically they do) so does the value of your home.
Tax advantages:
The interest portion of your monthly payment is like any other interest. It’s the fee you pay for borrowing the money. However, the
great thing about mortgage interest is it’s tax deductible. And so are your property taxes.*
Loan options:
There are different types of loans to choose from. So depending on your financial situation, and long and short term plans, you can apply
for a mortgage that will fit your needs.
Live your way:
Do you feel comfortable in a sparse, minimalistic space design? Or do you like different colored walls and pictures everywhere? As a homeowner,
you’re free to live, decorate and change your home however you want.
Many experts believe it makes good financial sense to buy your home rather than rent. In 2012, the National Association of REALTORS® predicted that rents for apartments would increase for the fourth year in a row nationally – by 4.6% in 2013 – and rents will continue to increase by 4% each year in 2014 and 2015.
If the average national interest rate hovered around 4.5% (they’re much lower today), homeownership may well be a better investment of your money, especially if you plan to stay in the home for at least five years. Experts estimate that buying will be cheaper than renting until the 30-year fixed rate reaches 10.5%, more than double what it is currently!
An annual percentage rate (APR) reflects the mortgage interest rate plus other charges.
There are many costs associated with taking out a mortgage. These include:
The interest rate is the cost you will pay each year to borrow the money, expressed as a percentage rate. It does not reflect fees or any other charges you may have to pay for the loan.
An annual percentage rate (APR) is a broader measure of the cost to you of borrowing money, also expressed as a percentage rate. In general, the APR reflects not only the interest rate but also any points, mortgage broker fees, and other charges that you pay to get the loan. For that reason, your APR is usually higher than your interest rate.
If you have applied for a mortgage and received a Loan Estimate from one or more lenders, you can find the interest rate on page 1 under Loan Terms, and the APR on page 3 under Comparisons.
Down payment:
Different loans require different amounts.
Insurance:
Property insurance is required. Flood or other types of coverage may also be required.
Property taxes:
Varies widely. Determined by local city or county government.
Maintenance and home improvement:
From a leaky faucet to new paint, you don’t have to fix everything yourself, but paying for and getting it done is your responsibility.
Sometimes, due to your personal situation and long term plans, renting is currently a better option.
*PrimeLending is not authorized to give tax advice. Please consult your tax adviser for tax advice for your specific situation.
Address: 51 Mill Street Building D, Unit 15 Hanover, MA02339
Direct: 781-361-2625
Fax: 877-277-2431
Email: bmcmullen@primelending.com
Brian McMullen
Senior Loan Officer
Production Manager
NMLS#441856
Phone 781-816-2511
Branch Phone 781-709-3456
