Buyers Fund -- No Down Payment Mortgage Assistance

	Discovering Homeownership

	Learning About Credit & Income

	Banking on a Mortgage

	Understanding Settlement Costs

	Homeownership

	Understanding Refinancing

Discovering Homeownership:

Is Homeownership For You? | Why Own a Home? | Financial Considerations | pre-qualify for a Mortgage

Why Own a Home?

Many people enjoy the flexibility of renting. Renting allows you to live in a neighborhood for as long as you want without being responsible for maintenance. However, there are many benefits of homeownership. Below are a few of the advantages to consider.

Equity Building

The first few loan years you will notice that the majority of your mortgage payment goes towards the interest. As your loan matures, more of the payment will go towards reducing the mortgage balance or principal. This process is called amortization.

As you make payments, you reduce the principal and thus increase the equity in your home's value. Appreciation is another method that can increase your equity in the home.

Building equity in their home is often the first way homeowners begin building wealth.

Tax Advantages

The interest portion of your mortgage payment and the property taxes are tax deductible from your federal and some state incomes taxes. This deduction can mean a substantial savings in the taxes you are required to pay.

Payment Stability

When you select a fixed rate mortgage, your payment to principle and interest will remain the same over the term of your loan, regardless of inflation and interest rate increases. Your payment will only increase if your taxes or fire insurance increases. Renting can, and usually does, increase each time you sign or renew a rental agreement.

Pride of Ownership

Owning a home increases the involvement you and your family have with your community. You will gain a greater sense of belonging and permanence by owning and maintaining your own home.

Next : Financial Considerations

Is Homeownership For You? | Why Own a Home? | Financial Considerations | pre-qualify for a Mortgage

Interest:
The cost you pay to borrow money. It is the payment you make to a lender for the money it has lent to you. Interest is usually expressed as a percentage of the amount borrowed

Principal:
The amount of money borrowed to buy your house or the amount of the loan that has not yet been paid back to the lender. This does not include the interest you will pay to borrow that money. The principal balance (sometimes called the outstanding or unpaid principal balance) is the amount owed on the loan at any given time. It is the original loan amount minus the total repayments of principal you have made to date.

Amortization:
A term used to describe the process of paying off a loan over a specific period of time and a specific interest rate. The amortization of a loan includes payment of interest and a portion of the outstanding principle balance during each payment cycle.

Appreciation:
An increase in the market value of a home due to changing market conditions and/or home improvements.

Equity:
The value in your home above the total amount of the liens against your home. If you owe $100,000 on your home but it is worth $130,000, you have $30,000 of equity.

Fixed-Rate Mortgage:
A mortgage with an interest rate that does not change during the entire term of the loan