M AT H 1 0 5 0 G R O U P A SS I G N M E N TJ O SE P H R O B I N S O N

Buy A Home?

Buying A Home

Deciding whether to buy a home takes a lot of timeand planning. Here are a few thing to consider when buying a home.

Should I buy or rent? How much can I afford? What expenses come with a home? Where should I buy a home? How long will I be paying for my home? How do I get the best rate? What’s are the pros and cons of a 15yr loan vs. a 30yr loan? What will my monthly payments be? How much interest will I be paying? How much money should I put down on a home?

Rent or Buy

Are you ready to settle down? Well then buying a home isn’t a bad idea; however, you may want to consider renting until your completely ready for this enormous obligation.

Buying a home is a great way to invest your money if your ready and its done right.

Renting until you can save enough money to put a good down payment on a home will save you money in the long run.

Don’t rush any decisions. Carefully plan before buying your home.

How Much Can You Afford

When you decide you want to buy a home, you can go to the bank and qualify for a home loan. Banks won’t normally lend a home loan when the payments exceed 22% of your monthly income. This can be used as a reference to figure out home much you can afford.

Figure out 20% of your monthly income.

The max amount you would want to spend on your home is 360 times 20% of your monthly income.

For example, if I made $40,000 a year my monthly income would be $3333. Twenty percent of that ($666.67) would be your max monthly payment you would want to spend on a home. To figure out the amount of a home you can afford without exceeding that monthly limit, multiply your monthly limit by 360. The max amount I would want to spend on a home is $240,000.

15 Or 30

When taking a loan out for a home there are two different loans you need to consider. A 15 or a 30 year loan.

30 year loan is twice as long and enables your monthly payments to be much lower

30 year loan allows you to afford a more expensive home.

15 year loan normally comes with a lower interest rate.

15 year loan your locked into the loan for half as long

Although your payments are higher you save a lot more money after you pay off your loan

If you can afford it, a 15 year loan would be more a benefit to yourself. If your worried about being strained financially its best to stick with a 30 year loan. You can always make extra payments towards your low to help save you money later.

Other Useful Facts

Putting 20% or more down will save you from having to buy Private Mortgage Insurance (PMI)

Get a Real Estate Agent. Normally commission is paid threw they seller, not the buyer.

Be prepared to pay for closing costs and property tax.

Real Estate is a tangible asset that is protected from inflation.

Mortgage insurance is generally tax deductable.

REMEMBER

Plan Prepare Purchase

THANK YOU