There are a number of personal and emotional reasons to buy a home. But there are also some strong financial reasons to make the investment. Here are just a few of those reasons to share with your clients:
Increase Net Worth: Few things have a greater impact on net worth than owning a home. In a comparison of renters versus homeowners, the Federal Reserve Board of Consumer Finance found that the average net worth of renters was just $4,000 compared to homeowners at $184,400.
A Big Tax Deduction: One of the largest tax deductions available is the amount of interest paid on a mortgage. In fact, a $150,000 home at a 5.50% interest rate can add up to approximately $8,000 in first year's interest. This amounts to a significant savings – effectively reducing the amount of a homeowner's monthly mortgage payment.
Long-Term Appreciation: Over the last few years, home prices have corrected and become more affordable. While that's good news for potential buyers, it has overshadowed the long-term appreciation of a home's value. The reality is, despite market ups and downs between 1950 and 2002, US home prices appreciated at an annual growth rate of 4.8%. Even if you calculate a modest appreciation of 3%, a home purchased today for $150,000 will grow in value to $364,000 over 30 years.
Mortgage Interest Rates*
Rates as of Friday, 6th April, 2012:
Term
Conforming
APR
Payment per $1,000
Jumbo
APR
Payment per $1,000
Arm Reset Term
Conventional
360
4.25%
4.165%
$4.92
0%
0.000%
$0.00
-
FHA
360
3.875%
4.038%
$4.70
%
0.000%
$0.00
-
VA
360
4%
4.165%
$4.77
0%
0.000%
$0.00
-
Investment
360
4.75%
4.922%
$5.22
%
0.000%
$0.00
-
Jumbo
360
0%
0.000%
$0.00
5.25%
5.339%
$5.52
-
USDA
360
4.375%
4.543%
$4.99
%
0.000%
$0.00
-
2nd Home
360
4.25%
4.796%
$4.92
5.875%
5.967%
$5.92
-
7/1 ARM
360
3.625%
3.786%
$4.56
4.25%
4.334%
$4.92
84
5/1 ARM
360
3.125%
3.534%
$4.28
3.875%
3.957%
$4.70
60
*Rates are subject to change due to market fluctuations and borrower's eligibility. Payment amounts do not include amounts for taxes and insurance. Actual monthly payment could be higher.
For professional use only. Not intended for consumer distribution.
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AMERIFIRST FINANCIAL, INC. NMLS 145368 1550 E. McKellips Rd, Suite 117 Mesa, AZ 85203 480-344-1900 1-866-276-12974 BK0013635
Amerifirst Financial Disclosure- The opinions expressed here are the personal opinions of Ricky Khamis. Content published here is not read or approved by Amerifirst Financial before it is posted and does not necessarily represent the views and opinions of Amerifirst Financial.
There are a number of personal and emotional reasons to buy a home. But there are also some strong financial reasons to make the investment. Here are just a few of those reasons to share with your clients: 
