Can You Really Afford to Keep Renting?
With the rising cost of renting, many people are considering buying a home. However, some are worried about affordability. If you are paying rent, you can afford to buy a home.
Consider this example:
Buying A Home:
Mary’s $900 mortgage payment includes $700 of interest. Her total annual house payments are $10,800. At the end of the year, $8,400 of that is tax deductible ($700 x 12months). She is in the 28% tax bracket, so her savings are $2,352. Her actual housing cost for the year is $8,448.
Renting An Apartment:
Joe believes he can’t afford to buy. He pays $800 in rent each month which makes Joe’s housing costs for the year $9,600. He thinks he is saving money by renting, but he is actually spending $1,150 more than Mary, and he is not building any equity.
Interest rates remain very low and have largely been very stable. The current rate for a 30 year fixed rate loan is approximately 4.25% for a conventional loan and approximately 4.125% for an FHA loan. However, interest rates are expected to increase. The National Association of Realtors is projecting interest rates to rise to 5.4% by June 2015.
So the question you should ask yourself is:
Can You Really Afford to Keep Renting?
The Lowry Team has first time home buyer specialists that can help you through the entire home buying process. From pre-approval to closing, the experts on The Lowry Team can answer all of your questions and concerns and guide you to the benefits of home ownership.
The Lowry Team is an award winning, full service real estate firm specializing in West Chester, Liberty Township, Mason, Monroe and the Northern Suburbs of Cincinnati. The Lowry Team’s culture is that of a fun, high energy group who prides themselves on providing, personal, professional real estate service.
The Lowry Team is “Different by Design”…taking a team approach to home buying and selling. The Lowry Team consists of members that are focused on areas of specialization including Listing Specialists, Buyer Specialists, Transaction/Listing Coordinator, Inside Sales Associate and a Marketing Director.
Don’t Hire an Agent…Hire a Team. The Lowry Team.
Buyers and Sellers can reach The Lowry Team, Keller Williams at 513-874-1830.
Ready to start searching for your first home? Start your home search here: www.LowryTeam.com
Here are some quick searches to get you started:
West Chester Ohio Homes For Sale Under $200,000
Liberty Township Ohio Homes For Sale Under $200,000
Mason Ohio Homes For Sale Under $200,000
Monroe Ohio Homes For Sale Under $200,000
Fairfield Township Ohio Homes For Sale Under $200,000
Fairfield Ohio Homes For Sale Under $200,000
Other articles that may interest you:
West Chester and Liberty Township Ohio Real Estate Market Report
The Value Of Being Pre-Approved