Is Homeownership Right for You?

Down payment: The portion of the home price that is not financed by the mortgage loan. The buyer must pay the down payment from his/her own funds or other eligible sources before securing a mortgage.   Mortgage payment: A regularly scheduled payment that is often blended to include both principal and interest.   Property taxes: Taxes charged by the municipality where the home is located based on the value of the home.

Buying a home is one of the biggest emotional and financial decisions you'll ever make, so prepare yourself to make a knowledgeable decision.

Although buying a home almost always seems like a great idea, it is important to understand what homeownership involves. Of course, being a homeowner is something to be proud of but it also means having to invest money, time and energy and take on added responsibilities. So, before you decide to buy a home, make sure you're ready.

Here are some things to consider:

• Financial Security. If housing prices rise, your home can provide you with some financial security due to capital appreciation.
• Stability. Having a place of your own.
• Financial Stress. Coming up with the down payment, meeting regular mortgage payments and other ongoing costs will tie up a lot of your cash, and can put considerable stress on your finances.
• Maintenance. Keeping your home in good shape requires time and money.
• Responsibility. You alone are responsible for payments, repairs and maintenance.
• Flexibility. You can decorate or renovate your home to meet your own family's personal tastes and needs.

Now that you have an idea of what to expect, the worksheet below will help you determine if homeownership is right for you.

 

Advantages of Renting	Disadvantages of Renting
Advantages of Buying	Disadvantages of Buying

 

Here are some questions to consider:		YES
1	Are you fairly certain you will not move to another community in the future?
2	Do you expect your income to remain the same or increase in the future?
3	Can you handle the financial responsibility of a mortgage?
4	Do you want to take care of home repairs and improvements?
5	Based on your assessment of advantages and disadvantages, and your answers to the questions, is buying a home the best choice for you?