Maryland REALTORS® Promote Home Savings Accounts
There is no question that buying a home is expensive. Although a monthly mortgage payment may be reasonable, and may be no more than a family might pay to rent a home, buyers have to come up with cash for a down payment and for closing costs. The Maryland Association of REALTORS® is working to help ease the financial burden on consumers who are contemplating the purchase of their first home in Maryland.
The Association has crafted legislation that would allow first-time homebuyers to save money earmarked for the purchase of a home in tax-free savings accounts. The proposed legislation (HB953/SB372) provides that prospective first-time buyers (or others on their behalf, such as parents or grandparents) may save up to $5,000 per year for 10 years for the purpose of purchasing their first home. The maximum that could be saved in these accounts would be $50,000. The interest on the account would not be subject to Maryland taxes.
According to Mary Antoun, CEO of the Maryland Association of REALTORS®, Maryland has some of the highest closing costs in the nation. The proposed legislation would give first-time buyers in the state an easier way to prepare for the upfront costs of buying a home.
Both of the bills have had committee hearings in the General Assembly. The Association will reach out to its members, the legislature and the state’s residents to garner support for the proposed legislation.