ResalesWed for a Little Less and Buy a Little Earlier
Countrywide Uncovers the Value of Paring Down Wedding Costs to Purchase First Home Earlier
Countrywide Home Loans, Inc.,
a national leader in residential finance, reveals the advantages for
couples of spending a little less on the "Big Day" and using the savings
to purchase their first home a little earlier. Wedding experts proclaim
today"s average wedding costs between $16,000 and $20,000, especially
with the Year 2000 wedding frenzy.
"The money spent on the wedding could be used instead to give couples
that financial boost needed to purchase their first home much earlier,"
said Mike Taliaferro, executive vice president in Countrywide"s retail
division. "If couples cut their wedding costs in half, they may have an
adequate downpayment or reserve fund, potentially allowing them to get
into their first home."
"This would also put couples years ahead of their peers in the home
buying market," explains Taliaferro. A recent study from the National
Association of Realtors(R) indicated that the average purchase age of
first-time homebuyers in 1999 was 32 years. In comparison, the 1997
United States Census revealed most couples first marry between the ages
of 25 and 27. These numbers suggest a substantial gap in years between
marriage and homeownership. "Purchasing a home earlier would allow
couples to start building for their future much sooner," concludes
Taliaferro.
Couples considering spending less on their wedding to purchase their
first home may realize the following advantages:
Tax Benefit -- Offset that marriage tax. Working couples that make
roughly the same salary can be pushed into a higher tax bracket after
marriage, therefore paying more in taxes than they did when they were
single. However, the interest paid on a mortgage can be up to 100
percent tax deductible. With a tax deduction offsetting the marriage
tax, some couples may find that homeownership is ultimately a great
financial tool. Homeowners should consult with a tax specialist for
more details.
Build Equity -- Over time, monthly mortgage payments will reduce the
principal balance of the loan and build equity in the home. Building
equity can become a financial tool that may actually help borrowers save
money. Savvy homeowners with equity may be able to borrow against that
equity for other expenses like vacations, a first child, college
education or even making home improvements.
Solid foundation -- Owning a home creates a sense of permanence and
stability. Homeowners may seize the opportunity to become actively
involved in their community. With a stake in their community,
homeowners are more likely to maintain their homes and contribute to the
economy of their neighborhood. Plus, homeownership provides a sense of
freedom and the flexibility to customize a home to fit individual needs
and preferences, unlike renters who must comply with the rules and
regulations set by a landlord. Many home improvements can actually add
economic value to a home while improving the occupant"s lifestyle.
Payment stability -- Homeownership can result in many financial
advantages. Unlike renting, owners are no longer subject to periodic
rent increases. Homeowners with fixed-rate loans have the same mortgage
payment for the entire life of their loan, unless they choose to pay it
off earlier. In fact, when inflation occurs, a mortgage payment may
actually become "cheaper" over time with a fixed-rate mortgage -- that
is, the payment amount stays the same each month, while the value of
each dollar becomes greater over the life of the loan.
To learn more about home loan options that are available, call
Countrywide at (800) 570-9888 or visit http://www.countrywide.com