BUYING VS. RENTING

Trends in home prices, personal income and mortgage rates, combined with the tax advantages of home ownership , make this an excellent time to turn the home of your dreams into a reality. If you're thinking of buying a home, you've probably already asked yourself, "Can I afford to buy ?" Another good question to ask is, "Can I afford to continue renting?" No matter what you're currently paying for rent, your total cash outlay over a period of several years will probably add up to a much higher total than you may have realized. The following chart shows how quickly the rent payments you're making add up, figuring in what this money would earn...

... invested at 10 percent interest. With the money you are currently spending on rent, you could be building equity in your own home. Keep in mind, too, that over the years your income most likely will increase faster than any increase in your mortgage payment. Rent payments, on the other hand tend to increase - right along with your paycheck.

MORTGAGE RATES

As a rule of thumb, a one point drop in mortgage rates means that half a million more families will qualify
for affordable financing. Yours could be one of them! Rates for conventional, 30-year fixed rate mortgages are
now at the lowest point we've seen in years. Increasingly popular alternate forms of financing may make your loan
even more affordable. Your real estate agent or broker can provide information on the types of financing plans available to you.

HOMEOWNER TAX ADVANTAGES

When you're figuring out how much you can afford to commit to monthly mortgage payments, don't forget the tax advantages of home ownership . Both property taxes and interest payments on a mortgage for an owner occupied home are currently tax-deductible. In the early years of a typical mortgage, all but a small percentage of each monthly payment is used to payoff the interest on the loan. This means that as a homeowner your annual taxable income could be substantially reduced by deducting the payments you make on property taxes and yearly mortgage interest. Ask your CPA, attorney or tax preparer how buying a home now would affect your tax situation at the next filing deadline on April 15th.

HOME VALUE APPRECIATION

In addition to tax advantages, you can also benefit from any increase in the value of your home both through appreciation and improvements you add for your own comfort and enjoyment.

YOU CAN MAKE HOME OWNERSHIP A REALITY

Take a good look at your personal financial situation in comparison to housing price trends and mortgage plans available in your community. You will probably discover that you are closer to home ownership than you realized. And that, in fact, this is the time you've been waiting for.

SEE YOUR REAL ESTATE PROFESSIONAL

Buying a home is probably one of the biggest investments you'll ever make. And when it's your first home, it is especially important that you seek qualified assistance. Your local real estate professional has the experience and expertise to help you find - and purchase - the home of your dreams.