|
|
Mortgage Rates Change
Daily | Get Today's BEST-EXECUTION Rates
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. |
|
|
