February 9, 2012

Home Mortgage - An prominent Financial Decision

Owning your own dream house is a feeling of free time and pride. Rather than renting where your money is going nowhere but your landlord's pocket, owning your own house is surely a good long term investment.

Mind you, owning a house is not that cheap. As we all know it, real estate values are presently in an all time low and building materials are raking in prices sky-high. But then you do not have to be intimidated by all of these. You can still pick to buy one as your long term investment in the future.

Benefits of owning your own house






Obviously, it is yours! You can do whatever you want, produce it to your taste, and paint it to your desired color. Also, when you pay off your monthly installments your money returns to you in a form of equity finance, compared to paying rent where your money does not come back to you in any form of benefit but a mere liability.

Your home is also an investment in the near future, should you pick to sell it. Of course, you will sell it for a behalf to merge other investments or debts. In some instances, the behalf is spared from cost of taxes.

Last but not the least, owning your house gives you more tax cuts than in renting. Asset taxes and mortgage interest rates are deductible from your normal tax burden.

The only drawback in owning your own home are the maintenance and repairs you will have to spend on from time to time. But then again, if you are after establishing a long term wealth and asset, these are just minimal expenses.

Affording a Home Mortgage

The first inquire that pops into your mind is whether you have the finances to buy a home. Then, if you are considered to buy one, the next thing you have to think is what type of home you could afford.

Next step is to imagine your asset-to-liabilities ratio. Ideally, an affordable monthly mortgage is 28% of your monthly salary.

In calculating your finances, just make sure that you are being honest with yourself and that you are being realistic with what you can afford and what you cannot. This will protect you from being heartbroken from a foreclosure.

Look for a reputable loaning institution

It is best to look for a reputable and garage financial institution to help you in acquiring a loan for your home. Do your own research by request some of your friends and relatives, look into newspaper clippings and the internet. Sometimes, it pays to be cautious.

Also, try to shop nearby for financial institution and assess which will give you the mortgage perfect for your needs. Look for competence, and check the connections this singular financial has. Again, it's better to be safe than to be sorry.

Just remember, a home mortgage is a long term financial commitment. This is an enforcement that you cannot do away with since you are investing your money into it.

Just make sure you are buying one for the right reasons. Most importantly, make sure that the choices you make will benefit you in the end. Gp

Home Mortgage - An prominent Financial Decision

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