Adding Up the Benefits of Home Ownership

by Allison Jaffe 12/22/2019

If you're renting a nice house, condo, or apartment, there's a good chance your monthly rent check is almost as much as a mortgage payment. Perhaps you've realized this and have been asking yourself why you're contributing to someone else's nest egg, instead of your own! If that sounds familiar, you may be ready to take the plunge into home ownership.

The other half of the equation is whether you're financially ready, and that would depend on a variety of things, including your credit rating, your debt-to-income ratio, and your ability to make a sufficient down payment on a new home. Although a 20% down payment is a desirable target to aim for, there's often a lot of flexibility on how much you're required to put down on a house.

One of the main reasons a 20% down payment is desirable is that it takes you "off the hook" for having to pay monthly private mortgage insurance (PMI). The second advantage of making a substantial down payment is that it reduces the principal amount of your loan, which, in turn, lowers your monthly payments even more. However, if you're ready to become a home owner, but can't afford a 20% down payment, you can often eliminate PMI payments earlier than scheduled by making extra principal payments. The bank or mortgage company you decide to work with can fully explain their policies and what your options are.

If you are interested in making the transition from renter to home owner, now's a good time to start talking to loan officers. If nothing else, you'll be educating yourself on the intricacies of buying a home. Working with an experienced real estate agent is another way to learn the ropes, so to speak, when it comes to the home buying process.

Other than the financial benefits of building equity in your own home, there are also a lot of practical advantages. If you're currently a renter, for example -- especially in an apartment building, duplex, or townhouse -- you're probably tired of the lack of privacy and the unwelcome noises you can often hear through walls, floors, and ceilings.

Becoming a home owner brings with it a pride of ownership and the ability to plant trees, bushes, and gardens on your own property. Depending on what's available in your price range, you can also enjoy your own private deck, screened in porch, or patio. Options for the kids (if you have them) include swing sets, sand boxes, and room to play backyard sports or run through a water sprinkler during the hot weather.

If you feel like you are ready to take the plunge into home ownership, the first step is to make lists of your requirements, your preferences ("wish list"), and financial resources. The next step is to find a good real estate agent to start showing you homes that fulfill your needs and check off as many items on your wish list as possible!

About the Author
Author

Allison Jaffe

Welcome to Key Real Estate Services 

Providing professional representation for Sellers and Buyers throughout NYC and the northern suburbs.

Westchester/Rockland/Putnam: 914-661-0340

Manhattan/Bronx/Brooklyn/Queens: 718-874-2877

www.keyrealestateny.com

Meet Our Team

Allison Jaffe, Licensed Real Estate Broker

Office: 914-661-0340 or 718-874-2877, Ext. 2

Call/Text: 718-577-5284

Email: [email protected]

During more than 14 years as an independent broker, Allison has managed all manner of residential real estate sales – single and multi-family houses, condos, co-ops, and mixed-use -- from upper Manhattan, throughout the Bronx and Queens, across Westchester to Putnam and Rockland Counties. Allison specializes as a Sellers Agent, Seniors Real Estate Specialist (SRES), Estate Properties Agent, and a Certified Buyer Representative (CBR). Please see our menu of Client Services to learn more about each of these focused areas of real estate expertise.

"I determined early in my real estate career to focus on the specific needs of my respective clients rather than a specific geographic area. My job isn’t to sell buyers on a town or school district – they know where they want to live – my job is to sell the one property in that location that my client has to sell. My buyer clients want options and having lived and worked in Westchester, Rockland, the Bronx, and Manhattan, I know where to find those options.”

Linda Mancini, Licensed Real Estate Salesperson

Office: 914-661-0340 or 718-874-2877, Ext. 3

Call/Text: 718-619-8022

Email: [email protected]

Linda joined Key Real Estate Services in 2017 to expand our client representation throughout Manhattan, Brooklyn, and Queens. Extending the firm’s core principal of market expertise, Linda specializes in HDFC (Housing Development Fund Corporation) apartments in NYC that keep affordable housing options open to financially qualified families.

"I’m happy to represent the firm’s client-centric, market expertise approach to real estate throughout NYC. After more than thirty years of experience with HDFC properties, I’m able to guide qualified clients through the particular challenges of buying into and selling out of this unique homeownership option.”

Lea Mae de Guzman, Client Care Coordinator

Office: 914-661-0340 or 718-874-2877, Ext. 1

Call/Text: 718-577-5286

Email: [email protected]

Overseeing transaction activity, Lea works directly with Allison and Linda to keep every sale and purchase moving forward efficiently. With her finger on the pulse of each client’s transaction, Lea is at the firm’s administrative hub for scheduling, document processing, and coordinated communication.

"While I attend to the day-to-day clerical and communication needs for all of Key Real Estate Services’ clients, Allison and Linda are free to give their undivided attention to one client at a time in the field. I’m sort of the company's human tracking app that every client can access online, by text, or on the phone.”