It's one of the biggest financial investments you’ll probably ever make. But that doesn't mean you should shy away from purchasing your first home. Click here to see how today’s combination of low rates and reasonable home prices allow you to find monthly mortgage payments equal to or less than your current rent.
Start the process rolling today. Ryland Homes makes it easy. Apply For A Loan Online Now! or visit a Ryland Homes sales counselor to explore your possibilities for home ownership. Get prequalified. Learn your credit score. And bring in your lease agreement to see how owning compares to renting. Still not convinced? Register here for special online offers from Ryland Homes to help you afford your first home.
Read on for 5 important things to consider when deciding if
owning your first home makes the most sense for you. Click on
each topic to learn more.
THE PROCESS IS EASYRYLAND HOMES GUIDES YOU THROUGH
Talk to a Ryland Homes representative to see how easy buying a new home can be. They will guide you through the entire process, from figuring out how much home you can afford to picking out the perfect finishing touches.
They’ll start by prequalifying you and helping you ascertain how much of a loan you can qualify for. Certain types of loans, such as FHA and VA loans, have slightly more lenient restrictions and allow for lower down payments. Then, once you know how much money you can borrow and how much you can have to put down, they’ll figure out what price range you should concentrate on. They can tour you through communities and floor plans that fit your lifestyle and budget.
Remember, buying a home in general is good but purchasing new construction is even better. All big-ticket appliances are brand-new so you shouldn’t have to worry about expensive repair costs or upgrades. New construction also offers the latest in technology and energy efficiency, which helps you save on heating and cooling costs over the long term.
OPPORTUNITY TO BUILD EQUITYINVEST IN YOUR FUTURE
Stop throwing your money away on rent and build equity for your own financial future,
not your landlord’s. When it comes time to sell, any accrued equity in the home
comes back to you.
For $1,000 a month in rent, all you receive is a place to live — whether you live there for one year or 30 years. On the other hand, as a homeowner, you can build equity with each monthly $1,000 mortgage payment. The longer you live in your home, the more equity you can build.
Historically, homes have consistently proven to be one of the most dependable long-term investments you can make, according to the National Association Of Home Builders (NAHB). NAHB statistics also show home equity as one of the most significant elements in your individual net worth.
Plus, when you own your home, you can itemize and deduct both your mortgage interest and property taxes from your taxable income. There are no tax benefits to you when renting.
You may also be able to deduct the points you paid when you purchased your home and the premiums paid for Private Mortgage Insurance. IRS Publication 530, Tax Information For Homeowners, provides tax information for first-time homebuyers. Click here for more: http://www.irs.gov/publications/p530/index.html
When it comes time to sell, you may not have to pay capital gains taxes. If you live in your home for at least two years, you can earn up to $250,000 ($500,000 for a married couple) on the home’s sale and pay no federal income tax.
HOME BUYING IS MORE AFFORDABLEMORE BUYING POWER WITH LOW MORTGAGE RATES
Moderate home prices and low interest rates have combined to make home buying more affordable than ever. The National Association Of Realtors’ (NAR) Housing Affordability Index rose to a record high in January 2009. This report tracks the relationship among family income, existing home prices and mortgage rates.
Interest rates continue to hover near record lows, so you can afford more home
for your money.
- On a 30-year fixed loan of $200,000, a 1-point up tick in mortgage rates from 5% to
6% would increase your monthly principal and interest payment by $93.51, or $1,122.12 annually.
- All other things being equal, with a monthly mortgage payment of approximately $1,400, you could afford a $251,992 home at 5% but only a $228,340 home at 6%.
A 1-point lower rate gives you $23,652 more in buying power.
With a 30-year fixed mortgage, the most common program currently used, your monthly principal and interest remain constant over the entire course of the loan. Rents can fluctuate annually and you can expect an increase almost every year.
LOWEST PRICES IN YEARSTODAY'S UNPRECEDENTED OPPORTUNITIES
Thanks to adjustments in existing and new home prices over the past 18 months, there have been significant gains in affordability for first-time home owners.
You have a wide array of housing options to choose from. You may now be able to afford a home in a close-in suburb or highly sought after area that previously had been too expensive.
Since prices are low, the potential for appreciation is high … resulting in a better return on your investment down the road.
DECORATE YOUR WAYOWNERSHIP BRINGS FREEDOM AND PRIDE
Living under someone else’s roof has its limitations. Plain white walls, old appliances, cramped spaces, noisy neighbors … these are just a few of the drawbacks of apartment living.
Owning your own home gives you the freedom to decorate any way your want and make your space your very own without worrying about losing your security deposit.
Not ready to spend your weekends mowing the lawn and making outdoor repairs? A condo or townhome makes an ideal transition from apartment living to home ownership. You won’t have to worry about landscaping chores or exterior building upkeep so you don’t have to change your lifestyle much.
If you purchase a townhome or single-family home, you get outdoor space, too. Have a barbecue with friends, get the pet you’ve always wanted, beautify your yard with a flower garden. You call the shots — not your landlord.
As a homeowner, you have more of a financial stake in your community than renters. Along with that comes a sense of belonging, pride and neighborhood involvement.
First-time home buyers or buyers who haven't owned a home in the past three years may be eligible to receive a tax credit. The tax credit is equal to ten percent of the home's purchase price up to a maximum of $8,000. The tax credit of up to $8,000 applies to single taxpayers with incomes under $75,000 and couples with incomes under $150,000. If income exceeds these levels, a homebuyer may be eligible for a partial tax credit. The tax credit only applies to purchases which close before December 1, 2009. Some tax credit restrictions apply. The new tax credit does not have to be repaid if you keep your home for three years. The information provided is a summary only and does not constitute legal or tax advice. See your tax professional for details. For more information visit http://www.federalhousingtaxcredit.com/2009
Payment comparison assumes a loan amount of $200,000 but does not include financing and closing costs. Payments include only principal and interest. Additional amounts may be due with payment, such as by way of example property taxes, hazard and monthly mortgage insurance premiums, and Home Owner Association fees. The figures are based upon conventional program guidelines. Other loan programs are available. Calculations are believed to be accurate, yet are not guaranteed. Further review is necessary to obtain an exact qualification. If you have less than 20% equity in your home, a monthly mortgage insurance payment may be required.
Buying power comparison shows purchase price of home that can be purchased at the stated interest rate. Payments include principal and interest only. Comparisons are based on 30-year fixed rate loans at stated rates with buyer making a down payment of $10,000 and having a household income of $60,000. Financing and closing costs are not included in financed amount. Additional amounts may be due with payment, such as by way of example property taxes and hazard and monthly mortgage insurance premiums.
Photographs are for illustrative purposes only. Information believed to be accurate but not guaranteed. Without limitation, no guarantee is made as to the accrual of equity in any home purchased. See Sales Counselor for details. © 2009 The Ryland Group, Inc. |
Willie and RaShanna Stewart
Moved March 13, 2009
"Owning our new home has allowed us the opportunity to live freely without the restrictions of renting. We can decorate and paint as much as we want to without having to worry about patching holes from nails or repainting the walls back white. We have our own private back yard... "
See More...What Ryland Homeowners Are Saying
Click Here for NAHB’s brochure highlighting reasons why buying a home right now is still a good investment.
This year, the Home Buyer Tax Credit gives first-time buyers a tax credit of up to $8,000. This tax credit does not have to be repaid if you stay in your home for at least three years. To receive this tax credit, you must close on your new home by November 30, 2009.
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