Purchasing a Home

 

Rent vs. Buy

 

Things being equal it's almost always better to own your home rather than to rent. After all, you build equity and get to write off your mortgage interest.* And if you play your cards right, when you sell you'll be eligible for one of the best tax breaks around. But that doesn't mean that everyone should be a homeowner. If your move is short-term or if interest rates are high and property values outrageous, it may be worthwhile to deal with a landlord for a while. Our mortgage calculator will help you determine which path is best.

 

Other Factors


Of course, buying a home isn't strictly a financial decision. For most of us, the thought of constantly worrying about losing our security deposit every time we pound a nail or paint a wall isn't particularly appealing. Here are some other things to consider before making your purchase:

 

This may sound simplistic, but first and foremost you should find a neighborhood and a home that you just plain like. "You're not going to wake up in the middle of the night and say 'Wow! Look at my tax deduction!'" says CFP Lewis Wallensky.

 

Moreover, you should check on the sales price trends of homes in that neighborhood. If it looks like the area is declining in value, then avoid commitment: You're probably better off renting.

 

Finally, don't forget that even with the tax-breaks of home ownership, you will still be incurring out-of-pocket costs that you wouldn't encounter as a renter -- from the cost of ripping down wallpaper to repairing a leaky roof. So before you buy, estimate how much those costs will be. After all, you don't want to live hand-to-mouth — even if it is in your own home.

 

To Rent or to Buy?

 

 
Pros
Cons
Renting
  • Flexibility (can relocate easily)
  • No maintenance costs
  • Rent payments don't build equity
  • Annual rent increases
Buying
  • Potential tax breaks (deduct interest and property taxes*)
  • Emotional satisfaction / pride of ownership
  • Property taxes usually increase
  • Upkeep and maintenance are your responsibility

 


Financing
             

Landmark Mortgage can handle any type of residential loan on almost every type of property. Below is just a portion of what we can do:

 

Conventional Loans

  • Fixed rate mortgages
  • Adjustable rate mortgages with special options
  • No down payment programs
  • Second home purchase with low down payment
  • First-time homebuyer programs

Government Loans

  • FHA fixed and adjustable rate loans
  • VA loans
Construction and Lot Loans
  • One-time "construction to permanent" closings available
  • Interim construction loans with permanent financing available
  • High loan limits with low down payments
  • Lot loans and bare land

Visit our FAQ section for more information!