Think you can’t afford a new Main Street Home? Let’s take a closer look at the numbers.
1. Building Equity: Nearly all of us pay a monthly housing payment. Some pay to amortgage company others pay a landlord. In both cases that payment is building equity in the place where you live. The question is: whose equity are you building? Equity for you and your family or for your landlord? Doesn’t it make sense to explore the option of owning your own new home so that you can start building your own equity? Each month you pay your mortgage, you’ll be investing in your future.
2. Affordability: Many renters think that they just can’t afford a new home. And they are pleasantly surprised to find that a house payment is very comparable to their monthly rent and often lower when considering the after tax equivalent. Most of a new house payment is made up of mortgage interest and real estate taxes (up to 90% of the monthly payment is some cases). Since these are tax deductible, the actual cost of the after tax equivalent mortgage payment is much less than you think. The exact amount is determined by your specific tax situation.
3. Actual Numbers: Let’s take a look at some typical apartment rental rates vs payments on a new home.
Chester (both examples in same school district):
· BRAND NEW 4 Bedroom Home: $917.45/month!*
Monthly Savings: $609.55 (you get a bigger home for less!)
Chesterfield (both examples in same school district)
· 3 Bedroom Apartment: $1,360
· BRAND NEW 4 Bedroom Home: $1174.15/month!*
Monthly Savings: $185.85 (you get a bigger home for less!)
Midlothian (both examples in same school district):
· 3 Bedroom apartment: $1,355/month
· BRAND NEW 3 Bedroom Home: $1,013.13/month!*
Monthly Savings: $341.87
*Disclaimer: This information is not intended to be an indication of loan qualification, loan approval, or a commitment to lend. It is also not intended to be a quote of guaranteed interest rates or closing costs. On ARM transactions, the APR may increase after closing. The APR is 4.231%. All figures are estimates as of 3/15/2011. Payment based on 2-1 buydown with 20% of sales price down. First year rate at 2.75%, 2nd year at 3.75% and years 3-30 at 4.75%. Payment includes estimated taxes, insurance, principle and interest. Does not include HOA fees or other expenses associated with home ownership. Subject to change. See New Home Consultant for details.