Homeownership may be the best “accidental investment,” and with a little knowledge of investments, can be the best “intentional investment.” My job is to help you understand these factors that affect your investment and make it intentional.
1.Interest rates continue to remain low! This is the price you pay to borrow money from the bank to pay for your home.

• In the last 45 years, 30-year fixed-rate mortgage interest rates ranged from 18.63% in 1981 to 3.31% in 2012. In the last 5 years, rates have remained in the 3.5% to 4% range.
• There is no guarantee rates will stay this way because they can always change.

2.Equity is the value of your home, which can grow every year.

• This diagram shows how, over a span of 30 years, equity in a home can increase from $15,000 to $486,000.
• This happens with equity buildup, which is a combination of appreciation and debt pay-down.
• Your home’s value can increase. This is called appreciation.
• Your loan amount decreases as you pay it off. This is debt pay-down.

3.Buying your first home is an emotional decision—“Home is where the heart is.”

• A home represents your personal tastes and provides a haven of stability and security for both you and your loved ones.
• It represents pride of home ownership because it’s yours.

Don’t delay buying your first home. Every month you wait could bring increases in interest rates, or home prices, or both.