How can I afford my monthly payment?

Tax Advantage of Home Ownership:

One of the questions first time home buyers ask is how can I afford this house payment vs the rent payment I am making today.

It’s a great question, and before I answer how you can benefit from the tax laws, let me recommend that you speak to your CPA, Tax Preparer or Financial Planner.

What the tax rules state today is that your mortgage interest payments are deductible as well as your property [Real Estate] taxes. Do some planning (with the professionals I mentioned above) to determine how much you can deduct from your income, to pay less in taxes.

After you know your total tax liability for the year, you could go to your employer and adjust your W4 exemptions. What this means is that you can adjust your exemptions so that each month less taxes are taken out of your paycheck and you can use those funds to help pay your monthly house payment.

Building Net Worth:

Homeownership is one of the most effective ways to grow personal wealth over time. As you make progress on your mortgage, you’re also increasing your ownership stake in your home—an asset that can appreciate in value. Unlike renting, where monthly payments build equity for someone else, owning a home allows you to invest in your future. Over the years, many homeowners find that their property becomes one of their most valuable financial assets. Call me and let’s discuss your specific case.