Hope Leitner, Realtor®, CRS

Acquiring a solar system for your house is a lot like buying a car. Depending on your financial situation, your decision process may vary. You just need to understand the ramifications of each type of purchase. There are several ways to purchase solar; using cash, financing a loan, or leasing. Each has its pros and cons.  Purchasing a Solar System with Cash Pros : Like any purchase, paying cash is usually the cheapest in the long run. You won’t pay any interest, and there are no monthly payments. If you have $15,000 – $25,000 sitting idle in a savings account, you can buy a solar system. Instead of earning interest on your savings, your “return” will be in the form of reduced electric bills. You may be able to offset a $200/month electric bill which equals a “return” of $2,400 / year. This is a great option if you know you will be selling your house. The addition of solar panels may empower you to sell your house for more money. Cons : You spend a lot of money. At the e...

These hypothetical examples are illustrations for educational purposes only and are not an offer to lend nor a Good Faith Estimate. Examples are for a $250,000 home that rose to $275,000 with a rate increase from 4.50%/4.762% APR to 6.50%/6.95% APR on a zero point 30-year, fixed-rate loan with a 20% down payment, $4,000 in taxes and annual insurance of $580 for the "today" example and $638 for the "tomorrow" example. APRs are calculated using closing costs equal to 3% of the loan amount. Actual costs can be less, and actual rates are subject to change at any time. Qualification for any loan is dependent on individual circumstance and subject but not limited to employment/income, credit history and acceptable liquid assets to close. First time home buyers currently have a historical advantage with both low rates and prices. What happens when the trend begins to shift? You might not qualify to purchase the same house. Unless your income keeps pace with price a...

Buyers and Sellers who complete their transactions in 2014 may be able to take advantage of the tax deductions for closing costs when they file their return in 2015.  Contact your CPA to help you maximize the deductions available to you when you are buying and selling property.