Here is a little snow day info I thought I would share with you. The Federal House finance Agency reported house prices rose 1.4% in the fourth quarter of 2014 and rose 4.9% from the fourth quarter of 2013 to the fourth quarter of 2014. Wait a minute. I can buy a home, pay less than 4% in rate, write off the Mortgage Interest and with appreciation earn an almost 2%?
Considering a rate of 3.875% the estimated impact after the Interest Tax deduction is about 2.95% (3.875% less .25% = 2.95%, using a 25% tax bracket). If you are paying about 2.95% after your tax deduction and earning an average 4.9% in value your net asset growth is 1.95%. On a $250,000 home you would average $4,875 net worth increase annually. This is a net worth growth of $406 monthly. Many of us invest in deferred compensation plans, 401k’s, IRS’s, savings plans and 529 plans and these are all great ideas but only if you already own a Home!!
Beat the market before the market beats you.
For more information contact Nick Russo at Towne Mortgage - Your Hometown Mortgage Lender!