When looking to buy a home there are many things to consider besides just the size of a home. Home amenities, school district and desirable neighborhoods also play a big part in your decision.
What many people may not realize this that there is a cost for waiting to purchase a home. Many people believe that renting little longer will not only allow you time to find that perfect home but will also save you money. Let's take a look at the numbers and see that this is not always the case.
|Renting A Home|
|Expected Annual Rent Increase:||2%|
|Buying a Home|
|Purchase Price of a Home:||$250,000|
|Mortgage of Home Loan:||$225,000|
|Interest Rate on Loan:||4.25%|
|Term of the Loan:||30 yr.|
|Home Ownership Assumptions|
|Years Before Selling:||6 yr|
|Home Appreciation Rate:||4%|
|Cost to Sell a Home:||6%|
|Federal/State Income Tax Rates||25%|
If you are currently renting a home for $1400 a month and that home is worth $250K, by owning that home for six years your net benefit would be approximately 89, 569.11
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