When Maryland Renters Should Become Buyers
Many people enjoy the easy home life that comes with renting property, and the millennial generation has waited longer than any other generation to become first time home buyers. However, for many of these people a day comes when it begins to make sense for them to jump into the world of homeownership and leave their days of being Maryland renters behind.
Reasons Maryland Renters Should Buy Now
While the reasons vary from person to person there are some common things to look for to help determine when Maryland renters should become buyers. Here are some of the most common reasons that renters decide it’s time to buy:
Want to save money – According to a report by Zillow renters pay on average, 15% more of their hard-earned monthly income on housing than homeowners do. This means that by deciding to buy instead of rent, you could see an increase in the amount of money you get to keep in your pocket each month.
You are emotionally ready – For some Maryland renters a day will come when you are ready to have a place to call your own. You will dream of owning a home and finding a place to start or raise your family. This tends to happen along with life events like marriage or a growing family. You might dream of owning a home with a fenced in yard for your dog and/or kids to run and play in.
No more landlord – Landlords can take much longer than they should to make repairs or replace broken items in your unit. Any money that you spend out of your own pocket to make repairs or improvements on a rental unit is wasted, because you lose it when you end your lease.
Fixed payments – If you obtain a traditional 30-year fixed rate mortgage you will know what your mortgage payment (minus property taxes and insurance) will be for the life of the loan. If you rent the same unit for 30 years it goes without saying that your monthly rent will increase over time when you renew your lease.
Tax deductions – As a homeowner you have tax deductions available that you cannot take advantage of as a Maryland renter. Homeowners are able to deduct from their taxes the mortgage interest that they pay throughout the year. There are also tax credits available depending on where you live for things like making energy efficient updates. Make sure you talk to a tax professional about your options.
It’s a great time to buy – Right now is a great time to buy. Mortgage rates continue to be at all-time lows, making it a great time to lock in to a 30-year fixed rate mortgage. Taking advantage of low rates now can help you save money instead of waiting several years and risking a raise in the rates.
Programs and Assistance for Maryland Buyers
Are you ready to stop renting and find a home to call your own? The state of Maryland wants to work with buyers to get them in the home of their dreams. There are multiple programs in place that buyers can use to make their dream a reality:
Down Payment Assistance and Partner Match – The costs involved with purchasing a home, such as a down payment and closing costs, can scare many potential buyers away from the process. Needing to come up with several thousand dollars out of pocket for closing can be more than many homebuyers are able to do. The Maryland Mortgage Program offers programs that provide down payment assistance and partner matching.
Down Payment Assistance – This is available for all homebuyers that are able to obtain a Maryland Mortgage Program mortgage. It is a separate zero percent loan to assist buyers with putting together a down payment. Buyers are able to borrow up to $5,000. The principal of the loan is repaid after the mortgage is paid off or after the house is sold.
Partner Match Programs – There are organizations that have partnered with the Department of Housing and Community Development to provide funding through grants or loans to help first-time homebuyers obtain the cash necessary to close on their home. These funds can be matched by the Maryland Mortgage Program up to a set amount (currently $3,500).
Maryland “You’ve Earned It!” Initiative – Maryland wants to help college graduates buy their first home. This program is available for a limited time only and allows eligible buyers that have a minimum of $25,000 in student debt to receive a 0.25% reduction on the standard rate offered through the Maryland Mortgage Program.
Maryland Homefront – Maryland appreciates our veterans and active duty military. As an act of gratitude for your service, a 0.25% discount is available on 30-year fixed rate mortgages for active duty military and veterans.
Maryland HomeCredit – We previously mentioned that homeowners are able to take advantage of deducting their mortgage interest, but there is also a special tax credit available to eligible Maryland homeowners. If you meet the specific criteria, you are able to receive a tax credit up to 25% of the mortgage interest you paid. This allows you to reduce your federal tax liability by the amount of your credit, which reduces the overall amount of taxes that you are required to pay for the year.
Get more information about these programs and more from mmp.Maryland.gov. If you are a Maryland renter that has been thinking about taking the leap into homeownership, now is your time. You can take advantage of the current low interest rates and the assistance programs being offered through the Maryland Mortgage Program to make the leap into being a proud homeowner.
Looking for Maryland Waterfront Homes For Sale? First read my article on 4 Things About Maryland Waterfront Homes You Need To Know Before Buying!
Are YOU a Maryland first time home buyer? Read my article on 14 Tips for a Maryland First Time Home Buyer
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