Christiansen Realty Inc

Information may not be reliable

Seller Financing strategies for today’s market

Ask yourself: Rent or Buy?
The answer to that question really depends. It depends on three very important questions you must ask yourself:
1. Is it the right time for you and your family?
2. Is it the right house for you?
3. Can you really afford this house?
Number One: Yes, prices are low-but tighter lending requirements have made it harder to qualify for a home loan. Bottom line: You’ll need a larger down payment and a higher FICO score. Of course, homeowners qualify for tax breaks, most notably the mortgage interest and property tax deductions.
Number Two: To be sure, the recession illustrates that renters need to consider not just their desires, but also their financial realities before purchasing a home. It represents stability, a place where you want to settle down for at least five to seven years and raise your family.
Renting versus Buying Buying Renting
Mortgage payments vs. Rent $1.310 $ 1.760
Taxes & Insurance $ 350.00 $ 0
Monthly housing cost vs. total rent $ 1.660 $ 1.760
Home Buyer monthly savings $100
Rent Versus Buy-Tax Benefit Analysis Buyers Renters

Standard IRS Deduction Married filing jointly n/a $11.400
Mortgage Interest Deduction $12.20 n/a
Property Tax Deduction $ 3.030 n/a

Total Taxable Income $51.220 $55.050
Total Tax Liability $ 7.680 $ 8.260
Home Buyer 2010 Tax Saving $ 576
Assumptions: The payment, interest, taxes, insurance (PITI) based on median price of $ 303.460 in the 4th quarter 2009:
5.06 % fixed-rate ; 20% down payment: and a $202.168 loan amount.
The monthly rent is derived from RealFacts 4th quarter 2009 estimates for an average 3 BR. 2 BA. Unit.
Still not sure?
This simple online survey (www.bankrate.com/calculators/mortgages/rent-or-buy-home.aspxcan) can help. And when you are ready, seek out a realtor.