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First Time Home Buyer Raleigh Real Estate News

Hi Friends,If you know of anyone still renting now is the time to buy real estate in Raleigh. Prices have dropped and so have interest rates. 5.75% is available now. There is also a $7,500 tax credit for first time home buyers. If this news is not enough to get everyone moving, look at these facts.

Statistics from NAR show that rental houses and apartments increase rents 3% per year. If your rent payment is $1,000 a month, it will cost you $1,300 per month in 10 years. The total amount of rent you would pay over 10-year period would amount to $137,567. And, you had NO tax advantage. There is even a $7,500 tax credit for first time buyers or anyone who hasn’t owned a home in the past 3 years. Wouldn’t it be great to receive a check from Uncle Sam of $7,500?

Let’s say instead of renting you buy a $200,000 home now:

You purchase a $200,000 home

Fixed rate mortgage of 6.5% for 30 year period

Mortgage: $1,264

Property Tax and Insurance: $230

Total Payment $1,494

Tax savings per month (assuming a 30% income tax bracket)

Mortgage interest tax deduction: $322

Tax deduction for property tax: $68

Total Monthly Tax Savings: $309

Total Monthly Cost of your $200,000 homes after tax savings $1,104.

With every monthly payment you are paying off your home, instead of someone else’s.

RATES ARE AT 5.57% WHICH MEANS YOU CAN EFFECTIVELY SAVE 10% ON THE SAME HOUSE AS DESCRIBED ABOVE.

This is exciting times for first time home buyers. Give me a call so I can answer your questions and help you start living the American Dream of Home Ownership.

Have a great week-

Linda

 

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