Today’s real estate market provides an excellent opportunity for renters to turn their monthly payment into equity. While rising slightly, interest rates now are still much lower than in the past 10 to 20 years, and home prices in many areas are still affordable.
It’s critical to begin taking those first steps towards home ownership, and here are some reasons why.
Money paid for rent goes into the pocket of the landlord, while money paid for a mortgage goes towards the equity in your home. In other words, you keep the money you pay for your home, because it’s investment value increases with every payment.
Over the last decade, the cost of rent has increased an average of 5 percent to 8 percent each year. At that rate, payments starting at $750 per month would total over $90,000 over 10 years, with no accumulation of equity or wealth.
Buyers who can afford $750 a month for rent should really consider all the advantages of purchasing a home. With the multitude of loan programs available today, buyers with good credit can receive a loan with 3.5 percent down.
So sit down and do the math and then contact your real estate agent to discuss your best options for home ownership. It’s never too late to start building your future.
Contact the Kathy Henne Team RE/MAX FINEST by calling (937) 778-3961.