January 26, 2011
It may be a "buyer's market" in the surrounding areas but current fluctuations in the economy and the housing market can complicate the decision whether to buy a home or rent. How do you know what's right for you? LNB recommends that potential buyers ask themselves several key questions before making this important decision.
1. What will monthly costs be, and can I afford the payments? Keeping mortgage payments under 30 percent of your gross monthly income is a good rule of thumb. If you can't keep mortgage payments to less than that percentage, you may be better off renting for awhile. 2. What other debt do I have? Total rent or mortgage payments plus credit obligations should not exceed 35 to 40 percent of gross monthly income. 3. What is my credit score? Can I qualify for a good interest rate? A high credit score indicates strong creditworthiness, and that qualifies you for better interest rates on your loans -- whether they are mortgage loans or credit card loans. Maxing out on your credit lines and paying bills late will lower your credit score. The impact of your credit score on an interest rate can be significant. Lower interest rates also mean lower monthly payments. If your credit score is low, you may want to delay buying a home until you can improve your score. 4. How much will taxes, monthly maintenance, or other fees cost? Owning a home means you'll have to pay real estate taxes and other carrying costs like insurance and maintenance. On the other hand, owning a home brings big tax savings at the end of the year. As a renter, the owner pays those costs for you. 5. How many years will I stay here? Generally, the longer you plan to live someplace, the more sense it makes to buy. You'll build equity in your house and its value will increase over the years.
The American Bankers Association provides a Rent vs. Buy Calculator. You can access it by visiting their website at www.aba.com/aba/static/calculators.htm?.
LNB hit a new milestone---reporting $503.3 million in total assets. In addition, earnings for the first nine months of 2010 exceeded those reported during the same time period in 2009 by 14%. This growth is testament to the outstanding customer service provided by LNB's dedicated employees. According to President and CEO, Robert Schick, LNB's customers are also to thank for this tremendous achievement. "We could not have achieved this record level of assets without the trust and confidence our customers have placed in LNB," stated Schick. LNB has a long-standing tradition of excellence, dating back to 1852. As its mission, LNB safely and profitably serves all of its customers and communities with unmatched professional service. LNB offers an extensive variety of products within the personal and business banking realms, including direct deposit, online banking, Cash Manager, Remote Deposit Capture and much more. LNB also provides financial services, including investments and insurance. LNB is an independent, community bank with eleven branch offices located throughout Wayne, Onondaga, Ontario, Seneca and Yates Counties. For a complete listing of products and services, as well as branch locations, please visit bankwithLNB.com.