Home buyers you need to know this now.
A Qualified Mortgage Consultant Can Outline Your Options Renters Have Much to Gain by Pursuing Home
Ownership

By John Jarvis
Denver Mortgage Company

Buying a home vs. renting is a big decision that takes careful consideration, as most mortgage
consultants will agree. But the rewards of home ownership are great. For many years, purchasing
real estate has been considered an extremely profitable investment. It is an achievement that
offers a sense of pride, financial stability and potential tax advantages.

Yes, there are certain responsibilities associated with owning a home. Landlords will often argue
the benefits of renting, and for obvious reason. If you are renting, you’re helping them make their
mortgage payment.

The numbers are staggering if you look at it this way. If you are paying $1,000 per month for an
apartment, and you know your rent will increase 5% every year, then over the next five years you
will pay your landlord $66,309. If you are currently renting a house, you may be paying much more
than that each month. Either way, you gain no equity by shelling out this monthly housing expense
and you certainly won’t benefit when the property value goes up!

However, if you were to purchase your own home or condominium, you would be on your way toward
building equity. By choosing a fixed-rate loan program, you can have the comfort of knowing that
your monthly mortgage payment will never go up. In fact, you would have the option of refinancing
to a lower interest rate at some point in the future should interest rates drop lower than the rate
you’d currently be locked in at, and this would cause your monthly mortgage commitment to go down.

And not only would your own home give you added space, your own back yard and overall privacy—home
ownership would also give you some tax advantages. Depending on your tax bracket, owning a home is
often less expensive than renting after taxes. Interest payments on a mortgage below $1 million are
tax-deductible, and your mortgage consultant should help you evaluate the tax advantages of various
loan scenarios, and share this information with your tax consultant to glean feedback on your
behalf.

To find the loan program that is right for you, your mortgage consultant will need to evaluate your
monthly household income, current assets and savings, as well as any monthly obligations you may
have for credit card payments, car payments, child support, etc. These prequalification factors,
along with the report of your credit score, will determine how much house you can afford and what
interest rate you will pay for financing. It is also important to let your mortgage consultant know
what your future goals are, because this will help narrow
down which loan option is the best fit for your long-term needs.

There are many different types of loan programs available, including "low"
down payment mortgage programs. The most common and beneficial loan for people buying their first
home is the FHA loan, which only requires a 3.5%
down payment. In addition, FHA allows a seller to cover up to 6% of a buyer's closing costs which
really helps decrease the amount of money it
takes to buy a home. Many people also don't know that FHA allows the lowest credit scores of any
loan available today, only needing a 640 score in
most cases.

If there is any time to buy it is NOW! Why? Because home prices are low today. Low home values are
surely not good for people selling homes but they are great news for people wanting to buy a home.
Don't miss this opportunity to take advantage of the current market before home values rise.

Tell John that Patrick Morgan with Madison and Company sent you!!!

John Jarvis is affiliated with Denver Mortgage Company, a Licensed Broker, Colorado
Department of Real Estate, NMLS# 211618

Call today for a free copy of our Home Buyer Handbook.
John P Jarvis
303-763-7676
Cell 720-732-2705
Johnj@denvermortgagecompany.com

http://www.denvermortgagecompany.com/agents/agent.rad?id=1872