March 22, 2019 rummy

Owning a home is still a sure-fire way to increase you and your family’s wealth. Whether it be your first, second or fifth, if you’re planning on buying a home, it is recommended to meet a local professional to find out how you can get the most out of your purchase. Every month that you pay your mortgage, you are paying off a portion of the debt that you took on to purchase your home. Therefore, you own a little bit more of your home every month in the form of home equity. As your home’s value increases, you also…

March 20, 2019 rummy

A lot of Americans are holding back on buying homes because of their credit score. The sad truth is the majority of this group are misinformed and should have already started earlier than they plan to. Only 25% of the Americans have a FICO Score between 740 and 800. Here is the breakdown according to Experian: 16% Very Poor (300-579) 18% Fair (580-669) 21% Good (670-739) 25% Very Good (740-799) 20% Exceptional (800-850) Randy Hopper, Senior Vice President of Mortgage Lending for Navy Federal Credit Union said, “Just because you have a low credit score doesn’t mean you can’t purchase…

March 12, 2019 rummy

For most Americans, buying a home is the most important financial investment that we will ever make. Nevertheless, the recent housing bubble has left many people wondering if buying a home is still an effective way for people to save money and build wealth for the future. The answer is ‘yes,’ according to recent studies. The study revealed that the median net worth of a homeowner is $231,400 – a 15% increase since 2013. At the same time, the median net worth of renters decreased by 5% ($5,200 today compared to $5,500 in 2013). These numbers reveal that the net…

March 6, 2019 rummy

Although it can be said that the amount of the benefits depend on where you live, the fact remains that there are many financial and non-financial reasons favoring homeownership. Non-Financial Benefits Educational Achievement: Homeownership has a positive impact on academic achievement, including reading and math performance in children 3-12 years old. Civic Participation: “Owning a home means owning a part of the neighborhood.” Homeowners have a stronger connection to their neighborhood and are more committed to volunteer. Health Benefits: Adjusting for a range of demographic, socioeconomic and housing-related characteristics, homeowners have a substantial health advantage over renters. Public Assistance: The…

February 28, 2019 rummy

A self-made Millionaire David Bach gave a piece of simple yet compelling advice to Millennials; “Don’t Get Stuck Renting A Home… Buy One!” plain and straight, Bach pointed out a common mistake a majority of millennials tend to make with their life decisions. In a CNBC article, self-made millionaire David Bach explained that: “The biggest mistake millennials are making is not buying their first home.” He goes on to say that, “If you want to build real financial security, real wealth for your lifetime, then you need to buy a home.” Bach went on to explain: “Homeowners are worth 40…

February 22, 2019 rummy

Statistics show that the majority of homebuyers last year were couples, this totally makes sense as the down payment is particularly easier to tackle when shared with a partner. According to the National Association of REALTORS most recent Profile of Home Buyers & Sellers, married couples once again dominated the first-time homebuyer statistics in 2018 at 54% of all buyers. If you’re single, don’t fret! Single women made up 18% of first-time buyers in 2018, while single men accounted for 10% of buyers. One recent article pointed to a sense of responsibility and commitment that drives many single women to…

February 20, 2019 rummy

We have discussed time and again the advantages of owning a home over renting, and not only has the majority of Americans agree to these, but surveys say the same things too. Money spent on a mortgage is money well spent and help build one’s financial wealth. For Americans approaching retirement age, one of the greatest benefits to homeownership is the added net worth they have been able to achieve simply by paying their mortgage! The Joint Center for Housing Studies at Harvard University focused on homeowners and renters over the age of 65. Their study revealed that the difference…

February 14, 2019 rummy

Would you rather pay rent so someone else can afford to pay the mortgage or buy your own home so all the money you spent on it monthly will leave you with something to call your own? As Entrepreneur Magazine, a premier source for small business explained in their article, “12 Practical Steps to Getting Rich”: “While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’e making someone else…

February 13, 2019 rummy

One of the biggest rock potential buyers face is saving up for the down payment, and the sad truth is a lot of Americans find it as a deterrent and just give up their dreams of buying a home of their own. The truth of the matter is, you don’t need 20% Down to buy a home. In combination with higher rents, survey after survey has shown that non-homeowners (renters and those living rent-free with family or friends) believe they need to save upwards of 20% for their down payment! According to the “Barriers to Accessing Homeownership” study commissioned in…

February 6, 2019 rummy

One of the most common reasons preventing young Americans from owning a home is student loans. This is not necessarily a bad thing, on the contrary, it’s good to know the millennials know their priorities. Recent studies show that having a bachelor’s degree actually brings up the chance of a person becoming a homeowner. In a recent Forbes article, the author explained that “in just the class of 2017, the average student has about $40,000 in debt – almost enough for a 20% down payment on a median-priced home.” The Federal Reserve set out to determine exactly how much impact…