Did You Know???

• If you are currently renting and taking a standard deduction on your annual income tax return, did you know that if you bought a home and itemized your deductions, you could deduct home mortgage interest, real estate, and property taxes?

We know the home buying process can seem complicated, and your decision to buy a home can be one of the most stressful decisions you've ever had to make. But take a deep breath and relax! We've designed this section to make it easy for you, the first time home buyer, to determine what works best for your particular situation. Buying a home isn't for everyone, and you need to make an informed decision that you, and your family, are comfortable with.

If you decide to buy, you can generally expect to pay more for housing than you would if you continued renting. Even if your mortgage payment was fixed at a rate comparable to your current rent, homeowners have to pay the added cost of property taxes and homeowner's insurance. Your monthly mortgage payment, on the other hand, serves as a type of savings plan, since, over time, you will most likely accumulate equity, and this equity can be converted to cash (by selling the house) or borrowed against. As a renter, however, you pay the landlord's mortgage and thus forfeit ownership of any increased equity.

Another advantage of renting is that as renters we typically enjoy having someone else mow the lawn and fix the sink, and hence we avoid the added costs of housing maintenance and upkeep. Homeowner's, however, have the freedom to make upgrades and changes to the house and landscaping that renters do not, and in the end they benefit from any such improvements by increasing the value of the house.
 
The bottom line, then, is that renting is less expensive when you think about it on a outgoing monthly cash basis, and let's be honest, for some people that is all that really matters. If you can afford to increase you monthly housing expenditure, or can even cut a few corners in other areas, purchasing a home is the smartest thing you can do for you and your family's long term financial security.