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JoeRedskin · 03-29-2005, 11:09 AM

TAFKAS,

I own two moderately priced homes in the Baltimore area (one is a rental) - I am a firm believer in owning real property, so long as it is in a stable decent area. If you can afford to buy, now is the time w/ interest rates low with only caution being don't buy into an overpriced market - Hard to do right now. Just be sure that what is driving the prices is the excess desire for houses in your chosen location and not an artificial bump given to already expensive properties.

In terms of figuring out loans - here is a great site: http://www.mortgages-loans-calculators.com/

If you put in the amount being financed and the interest rate it tells you your monthly payment. It also will give a year to year interest/principal breakdown that lets you see just how much of a tax deduction you can take.

Just remember that in addition to any principal and interest payment you will need to escrow taxes and insurance which will probably add about $200-$300 depending on your tax rate and purchase price. (That figure is a true shot in the dark - for my homes in the Baltimore area each @175K that is the amount).

The only other consideration is the length of the mortgage: A 30 year is builds equity SLOWLY but you will have a larger tax deduction for a longer period of time (b/c you are paying A LOT more interest) and your monthly payments will be much smaller.

A 15 year builds equity pretty quick but is more expensive. A lot depends on how long you plan to stay in the home.

I bought my current home without the use of an agent and we drafted up the contract of sale and took care of all the paperwork ourselves with the help of our mortgage brokers and title agents. So I am, actually, pretty familiar with the process.

I also have two VERY good mortgage brokers who do a really good job of finding good rates w/o paying points or sticking in "ghost" charges.

I also work for the Maryland Insurance Admin which regulates title insurers so if you want to check out your title agent, let me know and we can run him/her through our system to be sure they are on the up and up.

PM me if you want to talk more about it. It can be quite stressful the first time through.

03-29-2005, 11:09 AM	#27
JoeRedskin Contains football related knowledge Join Date: Mar 2004 Location: Second Star On The Right Age: 62 Posts: 10,401	Re: Rent or Buy? TAFKAS, I own two moderately priced homes in the Baltimore area (one is a rental) - I am a firm believer in owning real property, so long as it is in a stable decent area. If you can afford to buy, now is the time w/ interest rates low with only caution being don't buy into an overpriced market - Hard to do right now. Just be sure that what is driving the prices is the excess desire for houses in your chosen location and not an artificial bump given to already expensive properties. In terms of figuring out loans - here is a great site: http://www.mortgages-loans-calculators.com/ If you put in the amount being financed and the interest rate it tells you your monthly payment. It also will give a year to year interest/principal breakdown that lets you see just how much of a tax deduction you can take. Just remember that in addition to any principal and interest payment you will need to escrow taxes and insurance which will probably add about $200-$300 depending on your tax rate and purchase price. (That figure is a true shot in the dark - for my homes in the Baltimore area each @175K that is the amount). The only other consideration is the length of the mortgage: A 30 year is builds equity SLOWLY but you will have a larger tax deduction for a longer period of time (b/c you are paying A LOT more interest) and your monthly payments will be much smaller. A 15 year builds equity pretty quick but is more expensive. A lot depends on how long you plan to stay in the home. I bought my current home without the use of an agent and we drafted up the contract of sale and took care of all the paperwork ourselves with the help of our mortgage brokers and title agents. So I am, actually, pretty familiar with the process. I also have two VERY good mortgage brokers who do a really good job of finding good rates w/o paying points or sticking in "ghost" charges. I also work for the Maryland Insurance Admin which regulates title insurers so if you want to check out your title agent, let me know and we can run him/her through our system to be sure they are on the up and up. PM me if you want to talk more about it. It can be quite stressful the first time through.