John Marion

John Marion is a Real Estate Agent with REMAX Town & Country in Canton, GA

North Metro Atlanta Mortgage Rates

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30 Year Fixed Rate Mortgage

15 Year Fixed Rate Mortgage

FHA 30 Year Fixed Rate Mortgage

Jumbo 30 Year Mortgage

5/1 Adjustable Rate Mortgage

How Mortgage Rates Make Buying Better Than Renting

Is it better to rent a home or buy? One fact to help decide if buying is better than renting for you is to calculate how much your monthly mortgage  payment will be if you buy. Then compare that number to how much monthly rent is for a similar property.

When the mortgage rate is low, it really is cheaper to buy a home as far as the monthly payment is concerned. Here is an example.

Example of Renting vs. Buying

Let's say you are renting a 4 bedroom, 3 bathroom single family house in Canton, GA for $1,200 a month. Similar homes for sale are $140,000. Here is a rough breakdown of this example:

Purchase Price

$140,000

4% down payment (may actually be less)

$4,200

Amount of mortgage loan

$134,400

Monthly payment for principle at 4% (may be lower)

$817

Property tax payment

$125

Property insurance payment

$100

TOTAL MONTHLY MORTGAGE PAYMENT $1,042
MONTHLY RENT $1,200

In this example the monthly mortgage payment (principle, taxes, and insurance) is less than what it cost for monthly rent.

Also see Rent Or Own?

IMPORTANT DISCLAIMER

The above numbers are only an example. Actual numbers will vary. The monthly principle payment was calculated using an online calculator such as the one to the left. I am not a mortgage lender. Consult a mortgage lender for actual rates. I can refer you to a qualified, professional mortgage lender. Other factors may influence your decision to determine if buying is better than renting for you. Call or text me at 703-371-9548 for more information.

 

 

John Marion is the agent who buys houses in Cherokee County Georgia and throughout North Metro Atlanta
Call or TEXT John @ 703-371-9548