Mortgage Information
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If you're like most buyers, a home is the most expensive purchase you'll ever make, and you'll probably need some form of financing.
There are many lending institutions that offer a variety of mortgage products. Financing options and rates can vary widely, so it is important to do your research and shop around to ensure you get the mortgage that best meets your needs at the best price. We would be happy to refer you to some very good mortgage contacts we have in Milford CT, Woodbridge CT, Orange CT, Bethany CT, Westville New Haven CT Connecticut, to help you in any way to secure the best possible rate for your home purchase. |
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Homeownership is a Good Investment
For the majority of Americans, their home is their largest financial asset and a major player in their investment portfolio. It's a good thing too, since stock market value has declined since 1998, while home price appreciation has increased. The NATIONAL ASSOCIATION OF REALTORS estimates that home value rises on average by 4.5% a year. That's a steady return on investment, ones own home is a much less volatile asset than stocks, bonds or mutual funds.
Use the mortgage calculators below to assist you in making some decisions around financing your new home in Orange CT.
Mortgage Qualification Calculator
This calculator will help you determine how much money you qualify to borrow. The results are informal. You will be subject to a credit approval from your financial institution taking into consideration existing debt load, amount of down payment, income and other variables.
Mortgage Payment Calculator & Amortization Table
This calculator will help you determine what your mortgage payments will be based on purchase price, interest rate and mortgage term, as well as other factors. The amortization table shows what the interest and principal payments will be over the term of the mortgage, for your new home in Milford CT.
Are you unsure about becoming a HOMEOWNER? Thinking that you can't afford to BUY a home? Are you worried about whether home buying is a good INVESTMENT?
Buying a first home can be an intimidating process. But the first step is making those first decisions: I want to own my own home, I can afford to own my own home, owning my own home makes sense for me financially and emotionally. If you are still struggling with those first decisions, here are some facts that might help you make that first step towards becoming a homeowner.
You Can't Afford NOT to Buy a Home!
Over the last ten years, the cost of rental housing in the U.S. has increased an average of 3 percent per year. That means that an apartment or home renting for $1,000 per month will cost more than $1,300 a month in ten years. If you rent the same home for ten years, the total amount you would pay for rent will equal $137,567!
Monthly Rent (Avg. Increases 3% per year) Total Annual Rent 1 $1,000.00
Year
$12,000
2
$,1,030.00
$12,380
3
$1,061.00
4
$1,093.00
5
$1,
6
$1,
$13,911.00
7
$1,194.00
$14,329.00
8
$1,230.00
$14,758.00
9
$1,267.00
$15,201.00
10
$1,305.00
$15,657.00
Total Rent Paid Over Ten Years $137,567
Tax Advantages of Owning a Home Result in Savings
None of the $137,567 is returned to you, either through savings or as an investment. Homeownership on the other hand, has tax advantages over renting a home, and those advantages can help you save money. Unlike your monthly rent, part of your monthly mortgage payment "comes back to you" in tax savings Here's an example:
You purchase a home that costs $210,000. Your down payment is $10,000 (plus closing costs - expenses incurred to actually process the transaction). You finance the balance with a 30 year fixed rate mortgage at 6.5 percent interest your monthly payments (not including utilities,insurance, etc.) are:
Monthly Mortgage & Tax Payments
| mortgage | $1,264.00 |
| property tax (at 1.25% rate) | 230 |
| Total Monthly 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 | $390 |
| Total Monthly Cost After Tax Savings | $1,104 |
*property tax rates vary by city and county
You actually save $390 a month by owning your own home. On a yearly basis, the savings is even ore dramatic:
Total Annual Costs
Homeowner Renter
annual mortgage payment
$15,168
$12,000
real estate taxes
$2,780
0
mortgage interest tax deduction
$-3,864
0
tax deduction for property tax
-818
mortgage principal accumulation
-2,232
0
appreciation
-9,450
0
Total Annual Cost
$1,566
$12,000
*Based on 4.5% annual appreciation rate from the NATIONAL ASSOCIATION OF REALTORS