Thursday, March 24, 2011

Renting Now? Start Paying Yourself "Rent"?

If you are renting a house or apartment now, take a few minutes to review this scenario.

Your rent expense of $800, $750 for rent & $50 for renters' insurance (you are insuring your property, aren't you?), will easily afford you a home of your own. The net payment on an FHA 30 yr fixed-rate mortgage for a  $125000 home is only around $727 on the attached example. You can download a copy of this scenario here.

[Please note that I am always conservative with my projections. I have projected a rate slightly higher than today's market rate and also accounted for the increase in the FHA mortgage insurance premium which will take effect April 18]

Instead of paying someone else rent of almost $50000 over the next 5 years, why not pay yourself? When the tax benefits are considered, your net payment over the same 5 year period is less than $44000. Also, you will have built up almost $10000 in equity in your new home. The benefit grows even greater over more time.

Call me to get a customized scenario for you and ask how you can get on the Path2Buy your new home. Whether your looking now, or waiting 5 months or 5 years, it is important to understand that you will be ready when your time is right.

Tim Epps
Sr. Loan Officer
Fairway Independent Mortgage Corp

1 comment:

micheal clark said...

Great Post! It's very nice to read this info from someone that actually knows what they are talking about. Tampa Short Sales