Struggling with the question, "Should I renew my lease or buy a home?". Let's look at one very important fact... The average net worth of a homeowner is almost $200,000 while the average net worth of a renting household is just over $5,000. Yikes!
But why? Isn't it more expensive to own a home rather than rent? Perhaps but when you pay your mortgage it is a guaranteed savings plan without having to make the decision to save. A fixed-rate mortgage maintains the same payment for the life of the loan (usually 30 years), your landlord will not be that generous. Additionally, a portion of your monthly payment is automatically applied to the principal loan amount.
A 30-year amortized, fixed-rate mortgage is an affordable means to buy a home at today’s value for life of the loan (usually 30 years).
Each year, less of the mortgage payments go toward interest and more go toward equity, the longer you're in your home the faster your equity builds. (Equity is the difference between what you owe on your home and the current value of your home.) Remember, home prices/values are steadily increasing so the equity is expanding due to the growth in your home value.
Imagine in 2017 your current payment is $999. per month for principal and interest, fast forward 30-years, your payment in 2047 is still $999. per month for principal and interest! As your income increases and circumstances change, your mortgage principal and interest will stay the same.
What if you don't want to live in the same house for 30 years? Good news, you can sell that home at any time and retrieve your equity (savings). You can take all or some of the equity you've earned to purchase your next home.
What if you don't have 20% to put down? FHA offers loans with as little as 3.5% down. Think that's a stretch to save? There are currently 240 down payment assistance programs available in Florida alone but every state offers down payment assistance.
We are The Portugal Real Estate Group, a Mother and Son Realtor Team dedicated to educating You, the Client, with our Knowledge and Expertise of the Marketplace so that You can make an informed Real Estate Decision. We know the market and understand your Specific Needs. We pride ourselves on our Quality Customer Service and Integrity bringing You the latest in Technology, Marketing and Total Product Knowledge. Buying or Selling a home is one of the most important decisions You will ever make and that is why we Dedicate our Time and Expertise with Full Attention. Our Mission is not just to Sell Property but to help You find a Home in which You can Build the Lifestyle of Your Dreams.
Struggling with the question, "Should I renew my lease or buy a home?"
" I owe my home purchase to Paul. Without Paul, I am certain I would not have gotten my dream house! Looking to purchase my first home in this daunting Seller’s market was very discouraging. I had a long list of wants that didn’t quite fit my budget. Paul knew EXACTLY what I wanted and he didn’t "