Are you on the fence about home ownership?

With all the doom and gloom in the media many renters are in a quandry about whether now is the time to take advantage of the buyers market. If you are tired of paying your landlords mortgage yet not sure if you should enter the world of homeownership here are some things to consider.....

Do you need tax write offs?
Mortgage Interest is one of the biggest tax incentives to owning a home. The interest you pay on your mortgage is tax-deductible up to $1 million.
You can also deduct the local property taxes that you pay each year which applies to your principle home and any others you may own.
You may also be able to deduct the points that were paid to the lender to secure your mortgage.
First-time home buyer tax credit of $8,000 that will not have to be repaid if you keep your home for at least three years.
Mortgage Insurance (PMI or MI) can be deducted in most cases for mortgages issued after 2006 and up to 2010 (may be extended by congress). There are income limits so talk to your tax professional.
When you are ready to sell you will make up to $250,000 in tax-free profit if single and up to $500,00 if married.

Home pricing is dropping and mortgage rates are low and you can't ask for a better combination if you are looking to buy. However none of this matters if you can't qualify for financing. With today's tougher economy lenders have tightened their standards for all types of mortgage financing. There are many factors involved in determining what interest rate you qualify for or the type of loan you can get. Talking with a good mortgage consultant will help you determine if there is a loan that is right for you and your financial situation. If you need a recommendation for a good mortgage broker, give me a call.