Information for Buyers: The Real Bottom Line
When you purchase a home it is important to understand the true cost of home ownership. To understand the true cost you will need to sit down with your real estate agent and work out the numbers.
The first thing you need to do is add up your monthly housing expenses, the mortgage payment, property insurance and real estate taxes. The total may shock you at first.
However, the important thing to remember is that this total is not the actual bottom line cost. When you calculate your savings on your income tax the number is dramatically reduced. During the early years the majority of your mortgage payment is interest on the loan which you can deduct, in addition, you can also deduct the property tax from your taxable income. Now you net monthly cost is probably substantially less than what you might have paid to rent a comparable sized apartment.
At the same time you are also building equity as the principal on your loan is reduced by your monthly payment.
We have learned this information through years of experience. However, we are sure your situation might be different. That's why WE ARE HERE. It is our job to personally advise home buyers and sellers. Ask us if any of the information here applies to your situation.
If you have any questions about the information you have found here or somewhere else, ask us. We will respond quickly without cost or obligation.