HOME OWNERSHIP VERSE RENTING

With every rent check you write you are helping to build equity in your landlord's property. Investing that BAH allowance living on base housing or rent money could be going toward building equity in a home of your own. Today's INTEREST rates are HISTORICALLY LOW that your house payment could be lower than your rent payment!

There are many advantages to owning a home, including:

1) Security - A feeling of security that comes from owning a home and the knowledge that your home is a safeguard against inflation.

2) Investment - Payments on your mortgage loan mean you are acquiring a major possession; instead of rent, you own more and more. The garden you plant, the permanent improvements you make - all enhance your way of living as well as the value of your home.

3) Tax Advantage - Your real estate taxes and the interest on your mortgage are deductible from your income tax.

4) Financial Independence - Most people start on the road to financial independence through home ownership. Your principal and interest payments remain the same for the full term of your mortgage while your rent usually goes up as the cost of living increases.

5) Environment - Your children grow up in the neighborhood of your choice.

6) Cash Equity - Better than a savings account, your home can appreciate to keep pace with inflation.

7) Satisfaction - Home ownership offers special advantages that make life more enjoyable - backyard barbecues, large family gatherings during holidays, a home workshop, a chance to enjoy your family's companionship in the privacy of your own home.

How much home can you afford?

Our handy RENTING VS BUYING CALCULATOR (ref calculators) can offer you valuable assistance in determining how much home you can afford and how much you can borrow. If you would like, I have attached a quick reference 30 Year Chart that shows the interest and principal. This does not include the tax and insurance per month, as this amount will be based on individual property & age of property.

  

Years	30
	5.00%	5.25%	5.50%	5.75%	6.00%	6.25%	6.50%	6.75%
70,000	376	387	397	409	420	431	442	454
75,000	403	414	426	438	450	462	474	486
80,000	429	442	454	467	480	493	506	519
85,000	456	469	483	496	510	523	537	551
90,000	483	497	511	525	540	554	569	584
95,000	510	525	539	554	570	585	600	616
100,000	537	552	568	584	600	616	632	649
105,000	564	580	596	613	630	647	664	681
110,000	591	607	625	642	660	677	695	713
115,000	617	635	653	671	689	708	727	746
120,000	644	663	681	700	719	739	758	778
125,000	671	690	710	729	749	770	790	811
130,000	698	718	738	759	779	800	822	843
135,000	725	745	767	788	809	831	853	876
140,000	752	773	795	817	839	862	885	908
145,000	778	801	823	846	869	893	916	940
150,000	805	828	852	875	899	924	948	973
155,000	832	856	880	905	929	954	980	1,005
160,000	859	884	908	934	959	985	1,011	1,038
165,000	886	911	937	963	989	1,016	1,043	1,070
170,000	913	939	965	992	1,019	1,047	1,075	1,103
175,000	939	966	994	1,021	1,049	1,078	1,106	1,135
180,000	966	994	1,022	1,050	1,079	1,108	1,138	1,167
185,000	993	1,022	1,050	1,080	1,109	1,139	1,169	1,200
190,000	1,020	1,049	1,079	1,109	1,139	1,170	1,201	1,232
195,000	1,047	1,077	1,107	1,138	1,169	1,201	1,233	1,265
200,000	1,074	1,104	1,136	1,167	1,199	1,231	1,264	1,297
205,000	1,100	1,132	1,164	1,196	1,229	1,262	1,296	1,330
210,000	1,127	1,160	1,192	1,226	1,259	1,293	1,327	1,362
220,000	1,181	1,215	1,249	1,284	1,319	1,355	1,391	1,427

FRIENDS HELPING FRIENDS... BUILD . . . BUY . . . SELL . . . RELOCATE