Why Buy?
Renting Versus Buying Your Home
Pride in Owning: Most people buy homes to have control over where they live. Although investment features are important, the psychological reasons for buying—the satisfaction of owning and freedom from paying rent—are at least as important.
In a survey done by the National Association of REALTORS of 6,000 homeowners and 2,000 renters — perhaps the largest survey ever of attitudes toward home ownership showed that 76% of owners and 66% of renters considered pride of ownership an important reason for buying.
Dislike Paying Rent: Close to 7 out of 10 in almost equal portions of owners and renters expressed a dislike of paying rent as an important reason to buy. Renting offers a lifestyle that's nearly maintenance-free. That may appeal to you. but consider that renting offers you no equity. no tax benefit, and no protection against regular rent increases. Writing a rent check is just like watching your hard-earned money sail away!
Settling Down: More than 6 out of 10 renters said "settling down" was an important reason to buy.
Good Investment: 76% of owners and 69% of renters said that the investment aspect of ownership was important.
Tax Advantages: Property taxes and qualified home interests are deductible on Schedule A. for itemized deductions.
Long-Term Appreciation: People consider homeownership a good investment because they view it as a long-term venture. Historically, home prices have risen at relatively steady rates. Property tends to appreciate over the years. A homeowner gains equity as the mortgage note is paid down and value in the area increases.
Leverage Investment: People borrow a great deal to buy homes, yet they receive the full benefits of price appreciation. In the long run, investments in properties far outpace inflation rates.
Source of Savings: Homeownership always has been and continues to comprise the single largest source of savings for American households. Homeowners build equity and can borrow against it.
Sacrifices Are Worth It: Almost 7 out of 10 renters in the National Association of REALTORS
homeownership survey said that they planned to buy a home in the future. More than three-quarters of these people said they were willing to sacrifice to do that.
15 Things You Need to Know Before Buying
Property taxes and qualified home interest payments are deductible on an individual's federal income tax return.
Many times, a home is the largest asset an individual has and is considered one of the safest investments available.
A homeowner can exclude up to $500,000 of capital gain if married filing jointly or up to $250,000 if single or married filing separately. The home must have been the taxpayer's primary residence for two of the previous five years.
A portion of each amortized mortgage payment goes toward the principal, which is an investment.
A home is one of the few investments you can enjoy by living in it!
Most of the time, a REALTOR® can show you any home, whether it is listed with a company or a builder or is even a For Sale-By-Owner.
Working with a REALTOR® to purchase a For Sale-By-Owner property is very advantageous because someone will be looking out for your best interests.
A real estate professional who can provide you with financial information and connect you with a lender will give you a distinct advantage in making the right decisions.
Acquiring a Pre-approval Letter from a Lender will put you in the best position! It will give you confidence and will help your agent when negotiating with the seller.
Your real estate professional and lender can provide you with a list of items that you'll need to make a loan application, so you'll be ready when the time comes.
The right to conduct a property inspection, included in your purchase agreement, gives you the ability to negotiate with the seller once you know all the facts about the property's condition.
Your real estate professional will provide you with market information on the area you are interested in purchasing your home.
Working with a REALTOR® who has an office "team" helps assure the buyer that the transaction will be handled smoothly.
In a "seller's market." don't go looking for a deal. Set your sights on the right house for you and then let your REALTOR® help you negotiate the best price and terms.
A Home Protection Plan can provide coverage for selected items, such as central heating and air interior plumbing, built-in appliances, water heaters, etc. If the seller is not providing this coverage, you can purchase it yourself.
Getting Pre-Approved
It is extremely important that you connect with a qualified lender. Your lender will review your financial position to determine the price most suited to your ability to pay, taking your comfort level with payments into consideration. You will know in advance what your payments will be so you won't waste time viewing homes you cannot afford. In today’s market, there are many loan programs you can choose from and you can select the best loan package without being under pressure.
Benefits of Pre-Approval:
You will have peace of mind knowing what price range you can seek in advance.
Sellers will find your offer more favorable if they know in advance your ability to secure financing making your offer more competitive.
You will have an estimate of your closing costs and they will be explained to you in detail.
Understanding Home Interest Rates
What They Are and Why They Matter
If you’re thinking about buying a home, you’ve probably heard a lot about “interest rates.” But what exactly are they—and how do they affect your mortgage and monthly payment? At Top Tier Realty, we believe in helping our clients make informed, confident decisions, and that starts with understanding the basics.
Here’s what you need to know about home interest rates and how they impact your journey to homeownership.
What Is a Home Interest Rate?
A home interest rate is the percentage a lender charges you for borrowing money to buy a home. It’s essentially the cost of your loan. Interest is paid in addition to the principal (the amount you borrow), and it directly affects how much you pay over time.
Even small changes in interest rates can significantly impact your monthly mortgage payment—and the total amount you pay over the life of your loan.
How Interest Rates Affect Your Mortgage
Let’s say you borrow $250,000 for a home:
At 4.5% interest, your monthly payment (excluding taxes and insurance) might be around $1,267.
At 7.0% interest, that payment jumps to about $1,663.
That’s a $396/month difference—or more than $142,000 over 30 years.
In short: Lower interest rates = lower monthly payments and long-term savings.
What Influences Mortgage Interest Rates?
Several factors affect the interest rate you receive, including:
The Federal Reserve: While the Fed doesn’t set mortgage rates, its policies influence lending rates across the board.
Inflation: Higher inflation typically leads to higher interest rates.
Your Credit Score: Better credit usually means better rates.
Loan Type and Term: 15-year loans tend to have lower rates than 30-year loans.
Down Payment: Larger down payments can reduce your interest rate.
Market Conditions: Rates can change daily based on supply, demand, and investor confidence.
Fixed vs. Adjustable Rates
Fixed-Rate Mortgage: Your rate stays the same for the life of the loan. This offers stability and predictability.
Adjustable-Rate Mortgage (ARM): Your rate may start lower but can increase or decrease over time, depending on market conditions.
Is Now a Good Time to Buy?
Interest rates fluctuate, and while no one can predict the future, it’s important to look at your personal readiness as much as market trends. If you're financially stable, prepared for a down payment, and have found a home you love, it may still be a great time to buy—especially with the right guidance and negotiation.
At Top Tier Realty, we help you understand all aspects of homebuying, including connecting you with trusted lenders who can explain your options and help you secure the best possible rate.
Final Thoughts
Understanding how interest rates affect your mortgage can help you make smarter decisions—and save money over time. Whether you're a first-time buyer or exploring your next investment, the Top Tier Realty team is here to answer your questions and guide you through every step of the process.
Let’s turn your homeownership dreams into reality—together.