As a fairly general rule, homes appreciate about 3% - 5% a year. The appreciation value may be more in some years and less in others and will vary from neighborhood to neighborhood and region to region.
|
Initially, 5% may not seem like that much. At times, stocks appreciate much more, and you could earn over 6% with the safest investment of all, treasury bonds. If you bought a $200,000 house, you presumably did not pay cash for the home but instead financed through a mortgage. Suppose you put as much as 20% down - that would be an investment of $40,000. At an appreciation rate of 5% annually, a $200,000 home would increase in value $10,000 during the first year. That means you earned $10,000 with an investment of $40,000. Your "return on investment" would be a whopping 25% annually. Your rate of return when buying a home is higher than most any other investment you could make. Income Tax Savings Because of income tax deductions, the government subsidizes your purchase of a home. All of the interest and property taxes you pay in a given year can be deducted from your gross income to reduce your taxable income. For example, assume your initial loan balance is $150,000 with an interest rate of 8 percent. During the first year you would pay $9969.27 in interest. If your first payment is in January, your taxable income would be almost $10,000 less - due to the IRS interest rate deduction. Property taxes are deductible, too. Whatever property taxes you pay in a given year may also be deducted from your gross income, lowering your tax obligation. Stable Monthly Housing Costs When you rent a place to live, you certainly can expect your rent to increase each year - or even more often. If you get a fixed-rate mortgage when you buy a home, you have the same monthly payment amount for 30, 20, 15 or 10 years. Even if you get an adjustable rate mortgage, your payment will stay within a certain range for the entire life of the mortgage. Forced Savings Saving money can be a big challenge for some people, but with a house, you have an automatic savings account. You accumulate savings in two ways. Every month, a portion of your payment goes toward the principal and the equity increases. Second, your home appreciates. Average appreciation on a home is approximately 5%, though it will vary from year to year, and in some years, it may even depreciate. Over time, history has shown that one of the very best financial investments is owning a home. |
If you are needing a 100% Mortgage, take a look at Rural Housing loans. The GRH program works well for many Americans and they use a common sense approach to lending.
30 year fixed rate
Loans can be 100 plus loan to value ( the fee financed can exceed the value )
No down payment required
For Moderate income households ( up to 115% of the county or national median income )
Closing cost can be included in the loan
No limit on seller contribution by USDA rural development
Eliminates requirements for private mortgage insurance
Can be used for new or existing properties
Guarantee fee of 2% of loan amount due after closing
Qualifies for community reinvestment act credit
Credit scoring is a statistical method that lenders use to quickly and objectively assess the credit risk of a loan applicant. Today this is more important than ever
The score is a number that rates risk associated with paying your debt on time.
|
Credit scores only consider the information contained in your credit report. They do not consider your income, savings, down payment amount, or demographic factors like gender, race, nationality or marital status. Past delinquencies, derogatory payment behavior, current debt level, length of credit history, types of credit and number of inquiries are all considered in credit scores. Your score considers both positive and negative information in your credit report. Late payments will lower your score, but establishing or re-establishing a good track record of making payments on time will raise your score. Paying your bills on time is the most important factor for a good credit score. It is crucial that you make payments on time, even if the debt you owe is a small amount. In addition, you may want to: keep balances low on credit cards and other "revolving credit;" apply for and open new credit accounts only as needed; and pay off debt rather than moving it around. Also don't close unused cards as a short-term strategy to raise your score. Owing the same amount but having fewer open accounts may lower your score. When shopping for a car or mortgage, the credit agencies have eliminated some of the negative effects of rate shopping. These consumer-originated inquiries are counted as one inquiry if within the last 30 calendar days. Multiple inquiries within the next 14 days are counted as one. Each inquiry will still appear on the credit report. Your credit report must contain at least one account which has been open for six months or greater and at least one account that has been updated in the past six months for you to get a credit score. This ensures that there is enough information in your report to generate an accurate score. If you do not meet the minimum criteria for getting a score, you may need to establish a credit history prior to applying for a mortgage. |
NAR put this out a while back, but does it still makes sense today ?
Tax write off: According to the U.S. Tax Code you can deduct the interest you pay on your mortgage, property taxes, and some of the costs involved in buying your home.
Home value: While the median price of single family homes nationally has gone down -1.8% between 2004 and 2007 the Mobile Real Estate has thrived by increasing in value by 6.4%. Even with a 6.4% percent increase in value the Mobile market is still considered a buyer's market thanks to the ongoing tremendous growth. Stats offered by the NATIONAL ASSOCIATION OF REALTORS.
Equity: When owning a house it is possible to gain equity value in many different ways. Supply and demand, new commercial development (accessibility), new schools in the area, new highway access and new greater valued surrounding neighborhoods to name a few. With tremendous growth in the Mobile market homeowners have been enjoying an annual increase in equity.
Money in your pocket: Building equity in your home is like building interest in a bank account but only at a more rapid pace. In addition when you sell your home, you can take a tax deduction of $250,000 or $500,000 for a married couple as long as you have owned your house for 2 years. (Capital Gains Tax) Why in the world would you pay someone else (rent) when you can put that money towards your own house that has all of these benefits. Benefit yourself not someone else.
See into the future: If you are paying rent you know that is will increase over the years. How much? Only your landlord knows. When you are paying a mortgage your payment is locked in if you are on a fixed mortgage. As mentioned earlier you can also write off the interest. Many some expenses go down over time as you continue to gain equity. Keep in mind that property taxes and insurance costs will go up.
You are the King or Queen of your own castle: There is no landlord telling what can or cannot do. The home is yours. You can do whatever you want to your home and reap the benefits and enjoyment of your investment.
Stability: Unlike rentals that have a high rate of turnover purchasing a home in a neighborhood allows you to settle in get to know your neighbors and allows you to build friendships. Children are able to go through the education system with the same kids in the area.
Cost of living in 1968
Dow Jones Avg- 943 ( today 12,000-14,000 )
Avg cost of a new home- 14,950.00 ( today 225,500.00 )
Avg income - 7,850.00 ( today 48,200.00 )
Avg monthly rent - 130.00 ( today 1,153.00 )
Gallon of gas - .34 ( today 4.00 )
Avg cost of a new car - 2,822.00 ( today 27,958.00)
Movie ticket- 1.50 ( today 7.00 )
Loaf of bread - .22 ( today 3.12 )
Gallon of milk- 1.21 ( today 4.12 )
HOME INTEREST RATES in 1968 - 6.5 %
TODAY - 5.25%
"The financial and credit crisis has lingered on for over a year now, and today some of the biggest casualties are being seen. After 158 years in existence, Lehman Brothers filed bankruptcy due to overexposure of high-risk loans in the mortgage arena. Merrill Lynch is being acquired by Bank of America, which will save them from the same fate as Lehman Brothers.
What all of this means to your potential buyer, believe it or not, is much better mortgage rates. Mortgage Bonds appear to be a safer place with a better yield than US Treasuries for investor's money right now.
( trying to find a silver lining )
 |
|
|
Homes for sale in Mobile Alabama. Real Estate for sale in Mobile Alabama. Mortgage, Home Loans, Mobile Al. FHA and 100% financing in Mobile Al and Baldwin County Alabama.
Prime Lending takes pride in being recongnized as a premier mortgage lender offering a wide array of loan products. FHA, VA, USDA, 100% loans, Jumbo's, renovation loans, fixer up loans and 203k loans.
I've made a commitment to serve the mortgage and home loans needs of my community - one family and one home at a time. My real estate and mortgage knowledge and expertise are completely dedicated to you.
In fact, as Mobile, Alabama was voted as one of the top 300 places to live in America by Money Magazine and CNN, it has been attracting families and investors alike looking to live in a stable and prosperous community, one that has even drawn one of the largest companies to move to the US in 40 years, the ThyssenKrupp Group.
For all the information you need on living in Mobile, Daphne, Fairhope, Malbis, the Mobile Metro area, Montrose, Point Clear, or Spanish Fort, Alabama contact me, Whether it's questions on Gulf Coast listings, Mobile, Alabama new homes, Fairhope, Alabama new homes, I can answer them and assist you in finding your perfect home in Daphne, Fairhope, Malbis, Mobile, the Mobile Metro area, Montrose, Point Clear, or Spanish Fort, Alabama.
People from Mobile are described as Mobilians.
Cities in Mobile and Baldwin County Alabama
Theodore, Semmes, Satsuma, Saraland, Irvington, Grandbay, Citronelle, Chickasaw, Springhill, Midtown, West Mobile, Daphne, Fairhope, Montrose, Point Clear, Spanish Fort, Malbis
Mobile Zip Codes
36601 36602 36603 36604 36605 36606 36607 36608 36609 36610 36611 36612 36614 36615 36616 36617 36618 36619 36621 36622 36623 36624 36625 36626 36628 36630 36631 36633 36640 36641 36644 36652 36660 3666336670 36671 36675 36685 36688 36689 36690 3669136693 36695
Mobile Alabama is the perfect place to start your family, start a career or give yourself an opportunity to live the kind of life you've always dreamed.
Mobile, Alabama is a wonderful southern city and the third most populous city in Alabama and is the county seat.
. The population within the city limits was 198,915 as of the 2000 census.
Mobile is the principal municipality of the Mobile Metropolitan Statistical Area, a region of 399,843 residents which is composed solely of Mobile County and is the second largest MSA in the state. Mobile is included in the Mobile-Daphne-Fairhope Combined Statistical Area with a total population of 540,258, the second largest CSA in the state.
Mobile recently ranked #1 for the "fastest growing economy over the next five years" by Moody's Economy.com & Forbes.com (financial magazine)
Have you thought of moving SOUTH.....Come see why so many people are loving our cities.
When I travel, I more times than not get the question about us being slower or even naturally lazy, all beacuse we speak slowly..... What these people don't understand .....Southerners have love affairs with words..
We speak slower because our love of the words is so great that we can't stand to part with them. We caress them, massage them, polish them and linger over them lovingly before allowing them to go on their way with a lilt and an inflection found nowhere else in the world.
I'm told by many it's because we have a habit of taking a sip of the elixir of life with every word and sentence. Who know's .....what I do know ,I love this place and the wonderful people who make the place I live so great.
Mobile is ranked #1 (forbes) as the city with best job/income growth in America for the next 5 years. In laymens terms, Mobile's leaders got the infrastructure in place that IS NOW ramping up the economic growth in the city.
A trade magazine for economic development put Mobile at the verge of adding over 55,000 jobs over the next 7 years.. and most of those will pay over $35,000 annually according to their report with over 73,000 moving into Mobile in that same period. Personally I think Mobile could literally see its population double in 7 to 10 years as if the economy continues to worsen, people will flock to cities that have job opportunities as Mobile is becomming recession-proof.
ThyssenKrupp AG of Dusseldorf, Germany, has chosen north Mobile County for a steel mill now valued at $3.7 billion, ending a fierce bidding war over incentives between finalists Alabama and Louisiana.
The company's board of supervisors made the decision today in Dusseldorf
The Alabama site, which is near Mount Vernon and on the Tombigbee River, was chosen over a site along the Mississippi River near Convent, La.
"This is a game-changing decision for Mobile, Alabama," Mobile Mayor Sam Jones said in a written statement. "We are no longer living on potential - we are living up to it. This plant will have a tremendously positive impact on our citizens for years to come."
If the Air Force contract holds up, and Northrop Grumman and its European partner EADS are allowed to proceed, Barnidge said the employment payoff for Mobile and Pensacola could be enormous.
"The economic impact in Alabama and Florida is expected to be about 6,500 high-paying jobs," he said. "And the spin off jobs from suppliers and other services associated with the assembly plant in Mobile could be in the hundreds of millions of dollars for Northwest Florida.
"And Pensacola sits at the epicenter of what could be only the third wide-body jet assembly plant in the world," he noted.
Economics club member Connie Crosby said of the tanker project: "I think it's fantastic, and I'm all for it."
Mobile County Commissioner Stephen Nodine said the 173 KC-45 tankers that would be built at the proposed $600 million assembly plant at Mobile's Brookley Industrial Complex would be just the beginning.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
