A Great Buyer's Market?
For First-Time Homebuyers

For the same reasons that the housing market is soft for sellers, it's an incredible time to buy a home for first-time homebuyers. With inventory high and interest rates still at their lowest levels in years, and without the worry of selling an existing home, first-time homebuyers have a very unique opportunity.

So, if you're a renter that's been waiting on the sidelines of the home-buying game, too nervous or overwhelmed to suit up and play, the current situation and new calculations from the National Association of Realtors^® may help spur you to action.

The figures speak for themselves:* If the cost of rental housing continues to rise at an average rate of 3% per year – as it has for the past 10 years – today's $1,000 monthly rental payments will add up to $137,567 after 10 years. However, purchasing a $210,000 home today with a $10,000 down payment and a 30-year, 6.5% fixed-rate loan would cost slightly more per month – $1,264 – which would amount to $151,680 after 10 years. But at the end of those 10 years, you would have built equity worth $156,572 (assuming a historic 4.5% annual appreciation rate). That money may be recouped when you sell your home or borrowed in the form of a home equity loan or line of credit.

Additional Benefits
Other potential advantages of homeownership include:

Tax savings. You may be able to deduct mortgage interest and real estate taxes from your taxable income, thereby reducing your tax liability.**

Predictability. A monthly rental payment may fluctuate, while a fixed rate mortgage payment remains the same for the term of your loan.

Making the Best Decision for You
Those who move frequently, have credit problems, can't afford the home they want or don't want the responsibility of owning a home may find that renting is a better option. To discuss your options, speak to a Mortgage Representative at 1-800-533-4004, ext. 7676.

The Cost of Buying vs. Renting       Buying Renting    Current monthly payment     $1,264* $1,000    Total paid after 10 years     $151,680 $137,567**    Equity Built     $15,572*** $0

*  Payment on a 30-year, $210,000 6.5% fixed-rate loan with a $10,000 down payment. **  Assumes payment rise 3% per year according to historic trends. ***  Assumes 4.5% annual appreciation.