Excel Funding Real Estate Services, Inc.
Mortgage & Real Estate Sales
PHONE:  (310) 784-2828 x225
28924 South Western Avenue, Suite 100, Rancho Palos Verdes, CA 90275

Why Should You Own a Home?

Information for Buyers

Some people like the flexibility that comes with renting. When you rent, you can live in a neighborhood for as little or as long as you want. You're also free of most maintenance responsibilities – your landlord usually handles repairs.

Of course, there are many other reasons owning a home can be beneficial. These are just a few....

Build Equity

In the early years of most mortgages, the majority of your monthly mortgage payments go towards interest on your loan. Over time, an increasing amount of the monthly payment goes toward reducing mortgage balance, or "principal".
 
As you make payments, you reduce the principal and increase your share, or equity, in your home's value. If your home increases in value through appreciation, your equity will build even faster.

Building equity or savings in your home is necessary. For many people, it lets them plan for retirement and other future goals.

Gain Tax Advantages

You are allowed to deduct mortgage interest and property taxes from your federal income tax and some states' income tax. These deductions can mean significant tax savings, especially in the early years of the mortgage when interest makes up most of the monthly payment.

After calculating your taxes, you may find that it's cheaper for you to buy than to rent.

Rely on Payment Stability

If you select a fixed-rate mortgage, you will pay the same monthly principal and interest payment for the term of your loan. Unlike renting, this type of payment will remain the same month after month, even when inflation leads to higher prices. However, your total monthly housing expense could vary if tax and/or insurance expenses change.

Frances Baldwin
Excel Funding Real Estate Services, Inc.
Ph: (310) 784-2828 x225Fax:(310) 784-2829
28924 South Western Avenue, Suite 100
Rancho Palos Verdes, CA 90275 US
Licensed Real Estate Broker CalBRE#01866188 NMLS#332480
www.excelfundingres.com
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