Renting vs Buying A Home in Florida

There’s nothing quite like a home that you can truly call your own. A place where you can have the gleaming hardwood floors you’ve always dreamed of, a space to cultivate your own vine-lined patio, a way to provide a good neighborhood for your kids to grow up in, and a freedom from the whims of your landlord. These are the images that immediately come to mind, for many of us.

Yet some of the biggest advantages of owning a home are less romantic and more practical – in fact, there are financial advantages to owning a home:

* Tax Deductibility You can deduct the cost of your mortgage loan interest from your state and federal income taxes. Since interest generally will account for most of your payment during the first half of your mortgage, the savings can be significant. Some of your costs at the time of closing (including prepaid mortgage interest) can be taken as deductions on that year’s income tax return, and points paid up front at the time of closing represent additional mortgage interest and may be taken as a deduction.
* Tax Deductibility of Property Taxes You can deduct all of the property taxes you pay.
* Appreciation Potential Real estate is considered a good long-term investment because it usually appreciates in value. The effects of borrowing potential can increase as the value of the home appreciates.
* Capital Gains Exclusion When it’s time to sell your home the amount of capital gains you have to pay is reduced. A homeowner can exclude up to $500,000 per couple if married and filing jointly, or $250,000 if single or filing separately for homes that have been the taxpayer’s principal residence for the previous two years.
* Capital Gain Treatment Congress allows preferential tax treatment on gains from capital assets held for more than one year. This would be important for a homeowner who has gains in excess of the allowable exclusion.
* Principal Accumulation Mortgages are designed to pay the interest for the time that the money has been used, as well as to retire the principal debt over a period of time. This payment plan means that part of the payment each month is for principal accumulation.
* Personal Enjoyment Pride of ownership is a valid reason for wanting to own a home. You can personalize your home while enjoying the financial benefits.

For the best evaluation of your financial situation, consult your financial advisor. He/she will be the most qualified to discuss the financial consequences of a home purchase decision, as well as help you to establish a plan that will achieve your home ownership goals.

Residential Interest Rates for the Week of May 27th

Heartland National Bank Residential Loans

May 27, 2008

 

Owner Occupied                                                         Investment Property (1-4 family)
 
30 year fixed    6.125%                                                    30 year fixed    6.75%
 
15 year fixed    5.625%                                                    15 year fixed    6.375%

 
•        Free prequalification
 
•        Loan approvals within 24 hours
 
•        Underwriting decisions are made locally
 
•        Stress-free, hassle-free, in-house loan process from application through closing
 
•        Fixed, Adjustable and Bridge loan products
 
•        Up to 100% financing on primary purchases
 
•        Current rate, terms and closing cost estimate provided same day
 

Contact Information

           
 Residential Loans
                   
 Melissa Rego                           mrego@heartlandnb.com
                   
 Steve Scheck                           sscheck@heartlandnb.com

           
Commercial Real Estate Loans
               
 William Allbritton                      wallbritton@heartlandnb.com  
               
 Jim Belflower                            jbelflower@heartlandnb.com 
                       
 
320 U.S. Highway 27 North, Sebring, Florida 33870   (863) 386-1300 Fax (863) 386-1302
 
www.heartlandnb.com

Pre-Approval to Get the Best Real Estate Deal in Highlands County

Did you know that a Pre-Approval to buy a home is as good as cash when you are making an offer to buy a home.  Many buyers want to start their search for a home prior to talking to a lender.  At this point the buyer does not know just how much house he or she can buy.  The buyer knows how much he or she can afford and of course the lender will tell you how much the lender thinks you can afford.  But, sometimes it is hard to believe “that little house” is going to cost so much each month….and lets not for get an additional amount for taxes and insurance.  Before you start looking at homes, contact a lender, give your financial information, have the lender  run a credit check.  If all goes well, the lender will be happy to give a Pre-Approval Letter with no contingencies other than a satisfactory appraisal of the home.  This is point when you are ready to start your search with an experienced Realtor.  When you find that perfect and affordable home you can make your offer with confidence and your offer will be taken seriously by the seller.

Imagine if you are a seller and two buyers made offers on your home priced at $200,000.  One buyer offered $190,000, with a pre-approval letter and close in three weeks.   The other buyer has not even been to a lender but he offered $194,000.  You as the seller have no way of knowing anything about this buyer.  A loan approval can take up to or more than 30 days  after application.  The buyer still needs to contact a lender and give an application.  Most buyers talk to several lenders to get the best interest rate etc.  A standard real state contract will specify the number of days allowed for approval.  If the Contract for Purchase said five days, this can mean that you may not even know for 35 days if the second buyer even qualifies for a mortgage to purchase your home.  Most sellers will pick buyer number one just because this sale is almost a sure thing contingent only on inspections and appraisal.  The second buyer may have fallen in love with your house now only to be disappointed to hear that the seller actually took a lower offer because the buyer was pre-approved.  If you are a buyer planning to purchase in the near future, take the time to get pre-approved.  Everyone wins in this situation.

You, the buyer may actually get a better deal on the home.  The seller will not be preparing to move only to learn the buyer cannot afford the home and the deal fell through.  Everyone  will be happy in the end.

If you would like to be pre-approved for a mortgage, visit my web site www.ACoolRealtor.com.  Click on Cool Featured Homes.  You will see a link for a Free Mortgage Approval with Heartland National Bank located in Sebring, Lake Placid and Avon Park.  Or you can contact either Steve Scheck or Melissa Stanley at Heartland National bank by calling 863 386-1300 and asking for either one.  Both Melissa and Steve will be happy to talk to you and get you started on you home buying experience.

Remember, before you apply or receive a Pre-Approval for a mortgage, visit my web site and start your home search on the internet.  No pre-approval is necessary for this!  You can search the entire MLS on my web site www.ACoolRealtor.com just by clicking on Cool Homes on MLS.  Once you have your Pre-Approval and are ready to contact an experience Realtor, give Maureen Cool a call or send and email.  It will be Maureen’s pleasure to help you find your perfect “Cool” home!