User Name Password
Register



Article

Jim Mrazek - Realtor - Entire Sacramento area including Placerville & Roseville!
Quick Search
Attention! You need Flash Player 8 to properly view this document. Get it at: http://www.adobe.com/products/flashplayer/
James Mrazek Your Realtor! Career, USAF

Phone
(916) 939-9442
Fax
(916) 939-2014
Office
(800) 619-9442

RE/MAX Gold El Dorado Hills
4359 Town Center Blvd., Suite 311
El Dorado Hills, CA 95762
Attention! You need Flash Player 8 to properly view this document. Click HERE to get it!
A Realtor for You!

Leveraging Your Money

One of the greatest financial aspects of buying a home is the ability to leverage your money. Simply put, leverage allows you to use a small down payment and financing to purchase a larger investment. For example, if you bought a $125,000 home with 10 percent down, you leveraged the $12,500 down payment to purchase an asset worth 10 times that amount!

Appreciation
The benefits of leverage really become apparent with appreciation, or the rise in value of a property. Using the above example, say you were to live in the house for 5 years, and during that time property values in your area were to rise an average of 2.5 percent a year. Your home would then be worth over $141,000. By putting only 10 percent down, you get to enjoy the appreciation for the full amount!

Paying yourself
In addition to the 10 percent down, you'll also have to make mortgage payments. But with each payment, a certain amount of money is being used to pay down the principal balance that you owe. This is called building equity. So in the event you sell your house, not only can you realize a profit from your leveraged money, you also have a chance to pay yourself back for the money you've put in over the years. No wonder so many people consider a home an excellent investment!



AgentAdvantage.comWebsite Design and hosting by AgentAdvantage, official agent and broker website provider of Homes.com
Copyright ©2000-2009 Homes.com, Inc. All Rights Reserved. Privacy Policy. Full Terms and Conditions.

Equal Housing Opportunity

Member Login