FREE HOUSE

Generally speaking, real estate normally doubles in value about every ten years. While we have seen price increases and decreases of 12-15%

per year, they usually average about a 7% annual increase. Prices will rise again, but we can't be sure when. This is a great time to buy.

Consider this example of home ownership, and plug in your figures.

Price of home:              $300,000

Down payment:                 15,000

Mortgage:                    $285,000

With a 30 year mortgage at 7%,  your payments might be:

Principal and interest:    $1,896.11

Taxes:                              300

Insurance:                          60

Mortgage insurance:            80    

Total:                          $2,336.11

Your first payment will include:

Principal:                      $  233.61

Interest                          1,662.50

If you are in the 30% tax bracket, your initial tax advantage could be:

Monthly interest:            $1,662.50

Monthly tax:                      300

Total deductions:           $1,962.50

30% return:                   $  654.17 per mo.

Annual return                 $ 7,850    per year

One year's payments:     $28,033.32

7% increase:                    21,000

Mortgage pay down:            2,895.06

Tax advantage:                 7,850.00

Profit for owning              $ 3,711.74

While you don't receive the $3,711 in profit until you sell your home, it is great to know that you are building equity and don't have to worry

about annual rent increases.  Now that's security and only one of the reasons that owning your home is a great investment.

And remember that the $21,000 increase in value is a 140% profit on your $15,000 investment.

We cannot predict or guarantee future prices on homes, nor can we determine your tax situation. These figures are not guaranteed, but they

are interesting.