Florida’s new home prices may be rising (a sign that the housing market is improving), but that shouldn’t turn you away from becoming a homeowner. However, falling mortgage rates (at historical low levels) have kept buying affordable when compared to renting. Why pay off the landlord’s mortgage every month, when you could own your own home and take advantage of tax savings from mortgage interest deductions and real estate taxes?
Everyone in the market thinks about the price they are willing to pay instead of the buying power at today’s low interest rates. Did you know that the principal and interest monthly payment on a 30 year, $100,000 mortgage is only $449.04 per month? Even if interest rates increase to 4%, the principal and interest monthly payment would only be $477.42. If your payments started in January, you would pay $3,968 in interest for the first year in the home. That entire amount is deductible on your federal income tax return! Assuming you are in the 27.5% tax bracket, you would save $1,091 in taxes, or $91 per month. So your $477 payment is really only $386 when you factor in the homeowner’s tax advantage.
Since one of the biggest hurdles to home ownerships (especially first time home buyers) is coming up with the down payment. There are programs to help buyers like USDA financing programs as well as some government agencies offering down payment assistance.
New Homes Advantage
Buying a new home from a new home builder has some advantages over a buying a presale. The new construction advantages include home warranties, lower building insurance, sales incentives (ranging from upgraded kitchens to bathrooms) and closing costs (most (if not all) of the closing costs are included if the builder’s approved lender is used). We can help you find the right home with the right home builder (i.e. Authur Rutenberg, Ashton Woods, Beazer Homes, Cardel Homes, Centex Homes, D.R. Horton, David Weekley Homes, Homes by Westbay, K Hovnanian, Lennar Homes, Ryan Homes, and Sabal Homes).
Thinking of buying real estate? You should consider using a realtor. If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Keller Williams Realty at 2119 W Brandon Blvd, Brandon, Florida 33511). As a life long resident of Central Florida, I can help you find the right property for you whether it is in Lakeland or as far south as Sarasota. The Keller Williams offices of ”Suburban Tampa” include the offices in Brandon, Plant City, Fishhawk Ranch, and our newest office in Valrico. My email address is firstname.lastname@example.org, or call me at 813.205.9280. If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.