Why are you renting when you can buy with as little as a 3.5% down payment and a good credit score. Your rent is $1,650 and the mortgage payment is $1,245 per month. This is an example of real rental property and what it would cost to buy that same property? You should buy Vs. rent a home: now.
I just received a notice today about a house that has been offered for rent at a rate of $1,650 per month. This home's value is about $155,500. Read on to see how it was cheaper to buy vs rent this same home.
The required lease/rent payment is $1,650 per month. You can see that the estimated monthly payment is $1,245 per month saving you $355 per month. Interest rates are going up so we used a higher rate in our calculations.
If you bought this house, you would save about $4,260 per year at today's interest rate vs paying rent. Rents will continue to increase while the principal and interest on a fixed rate home loan will not. To be fair, insurance and mortgage taxes can increase and probably will.
The dollar amount of those increases may be competitive with the dollar amount of your rental increase. Year after year. The evidence is adding up, you should buy vs. rent a home: now.
The example above is located in the city of Gulfport, MS. Other properties are less costly to buy than paying rent in this area. I picked this one because it popped up and gave me the idea to write this article.
Read this article about the best places to live on the Gulf Coast.
If you can afford a 20% down payment, the houses are even more affordable without mortgage insurance. The more you put down, the lower the payment. I also suggest that you consider putting down only as much as necessary to make the payment comfortable.
Over the years, your property will work for you repaying you for buying it. As mentioned above the appreciation and build-up of equity are great benefits.
Time to get pre-qualified
If you see what we see in this article, it's probably time to get pre-qualified. See how much home you can afford. Read our article on this site "Serious about buying a home? Get pre-qualified or lose out."
While it's still a seller's market, you need to know that you can buy a home before you can make an offer. When you decide you want that house, as the article will say, move fast with that pre-qualification letter. Read this article "can I qualify to buy a house?"
Click here for a form to get started on your pre-qualification.
Contact us, we can help you find your affordable home
At Logan & Anderson, Gulf Coastal Realtors, we are at your service. Our specialty is helping first-time buyers locate that perfect home, they can afford. We help people relocate to the Mississippi Gulf Coast as well.
Our blog site LoganAndersonLLc.com has lots of articles about things we have discussed above. You can also check out an article about Mississippi Gulf Coast Housing. To learn about qualifying for a mortgage click here.
