September 10, 2012
No matter which way you do the arithmetic the answer will always come out the same way. And really, that’s a positive. When you own a home you are going to pay off the mortgage and be done with it. If you were to buy a home today in 2042 you will be free and clear, it would be all yours! No more monthly payments…what a great goal to have. You can will it to your children or anyone you like. Yes, after you pay it off you will still have to pay your property taxes, but the monthly dollar amount will be a fraction of what the mortgage was. Consider what rents might be in 30 years. Would you rather be paying an inflated monthly lease or rent in 30 years, or just be paying the taxes on your home? I know what your answer is. It is just that simple. Smart people do everything possible to own their own home. Write out a plan; Scrimp and save for the down payment. Where can you save more money to go towards your down payment/closing costs of your new home? You only need 3.5% if you go with an FHA Loan, or if not 5 to 15% . Or if you can put 20% down you will not have to pay PMI insurance which is a safety net for the banks and lenders. That is usually the price of a modest car payment. Remember do not finance ANYTHING when you are preparing to buy a home. You will lower your price point; Loan to Dept Ratio and have to buy a lower priced home perhaps not in the neighborhood you desire. Be careful when considering buying a new car or financing furniture, remember DON”T DO IT! Just good Advice: Don’t pay for anything new in your rental unit…carpet/flooring, patio covers, sinks, faucets, make sure you have the owner do all the up grades and repairs. That money should not come out of your pocket, but should be going into that down payment savings account.
Today home prices are going up slightly, which means the sooner you can purchase a home the better. Stop giving your hard earned money to your landlord…who is making a mint off you.
Renee Baccaro Realtor “At Your Service”.