| Sure, it's tough to pull the trigger and
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| | power for you. The more equity you have
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| buy a home, especially as a first-time
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| | in your home, the easier it is to acquire
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| buyer. The big hit of covering both a
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| | a loan or a line of credit to fund home
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| down payment and closing costs is enough
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| | improvement projects, an investment
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| to scare any prospective buyer into
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| | property, or a big ticket item.
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| staying a renter. When you combine the
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| | No more rental restrictions.
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| fact that youll be responsible for any
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| | Owning means it's yours. You're free to
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| fixes the house needs and that it's
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| | do whatever you want to your new home (to
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| pretty difficult to just pick up and
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| | a certain extent, of course). Want to
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| move, owning your own home gets more
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| | paint? Go ahead. Feeling the need to make
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| frightening by the minute. But fear not,
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| | those two rooms into one? Get the permits
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| the advantages of owning a home far
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| | and go for it. Even better, owning a home
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| outweigh the risks. So if you're already
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| | means no noisy neighbors above you and no
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| looking for a home, continue to do so. If
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| | paper-thin walls which to share all of
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| you're a renter, it's time to reconsider.
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| | your most intimate details to perfect
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| Benefits:
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| | strangers through.
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| Save big on taxes.
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| | Sweet & Stable
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| When you own a home you'll have to pay a
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| | A fixed mortgage rate means you'll know
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| mortgage and property taxes. It stinks,
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| | exactly what your house payments are
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| we know. However, the interest on those
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| | going to be up to 30 years from now. Even
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| bills can help. They're fully deductible
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| | adjustable rate mortgages cap out at a
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| for both federal and state income taxes.
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| | certain level. Knowing what this,
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| The first few years of your mortgage
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| | undoubtedly your biggest bill each month,
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| payments mostly go towards interest,
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| | amount will be well into the future can
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| which means a big time deduction for you.
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| | help you plan for further down the road.
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| As a plus, many times all costs
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| | Renters have no such luxury, as their
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| associated with buying a home, including
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| | rent can and usually does increase
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| those involved with your loan application
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| | yearly.
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| and home appraisal, are usually
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| | Risks:
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| deductible.
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| | Appreciation isn't a guarantee
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| Equity is your friend
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| | Though history shows long term homeowners
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| Put simply, equity is the appreciation of
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| | routinely reap the benefits of
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| your home's worth over what you owe on
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| | appreciation and equity, the housing
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| it. That's money in your pocket; money
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| | market can slipped over the short term.
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| you can't accumulate if you continue to
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| | Research the area in which you want to
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| rent. Stats show that homes have
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| | live and make sure any prospective
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| appreciated in value every year in the
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| | neighborhoods show low crime rates and
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| United States since 1968. That includes
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| | growing value.
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| years of economic downturns and
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| | It isn't cheap
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| recessions. What's more, you can build
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| | As a general rule, mortgage payments are
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| equity my making improvements to your
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| | usually more per month than rent. As an
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| house that you can immediately enjoy,
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| | owner, you'll also be responsible for
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| such as installing a pool or redoing a
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| | maintenance and repairs, no more landlord
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| bathroom. You'll reap those benefits
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| | to do that for you.
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| further down the road when you sell your
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| | Menacing mortgage
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| home.
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| | If for some reason you can't make your
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| Appreciate appreciation
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| | house payments, it spells trouble.
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| The appreciation of your home's worth is
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| | Lenders could foreclose on you, meaning
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| the single biggest contributor to your
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| | you could lose the home and all of the
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| equity. Homes are considered a great
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| | equity accumulated so far. Renters, on
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| investment over the long term due to
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| | the other hand, can usually just downsize
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| their outstanding historical track
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| | to a smaller apartment if they find their
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| record. The value of a home typically
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| | monthly rent too much to bear.
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| appreciates at the rate of inflation,
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| | Pick up and go?
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| plus an additional 1 to 2 percentage
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| | Not so. Owning a home generally means
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| points. In booming markets, such as the
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| | fewer options when it comes to moving.
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| one experienced over the past few years,
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| | Depending on the state of the market, it
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| home values can grow at a much faster
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| | could take quite a while to sell your
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| pace, almost 9.4 percent in 2004 alone.
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| | house. Waiting for escrow to close could
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| Own to borrow
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| | prolong the process.
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| Owning a home means more negotiating
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