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 | |
| Monthly Rent: | $1400 |
| Renter's Insurance: | $20 |
| 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. |
| Closing Costs: | $4,500 |
| Down Payment: | 10% |
| P&I: | $1,106.86 |
| APR: | 4.753 |
| Home Ownership Assumptions | |
| Years Before Selling: | 6 yr |
| Home Appreciation Rate: | 4% |
| Cost to Sell a Home: | 6% |
| Federal/State Income Tax Rates | 25% |
| Net Benefit: | $89,569.11 |
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
If you would like to discuss more, please contact us at info@thebartongroupaz.com or call (480) 252-3079. Look forward to hearing from you soon.
