A friend asked me the other day to give my perspective on renting vs. owning. I thought about this, and came up with many great advantages to own and a few good reasons to rent. Then I got to thinking. Who cares what I think. Everyone has their own unique plans and situation. This is a very individual exercise that each potential buyer needs to go through on their own. What they need is accurate reliable information from different experts so that they can make an educated decision. I am not an expert on property, real estate law or insurance. But what i am an expert at is mortgage financial planning and figuring out interest savings and how your mortgage pays off over time.
All it takes is this example to show how much new equity you will create in just 5 years.
$350,000 purchase @ 5% down. 25 year amortization
Mortgage payment estimated at $1,525/month
Of that payment, $841/month goes to pay off your mortgage, and this number increases each and every month.
Total pay down of your mortgage in 5 short years is $53,566.
If your were on the fence on buying now or waiting 5 years until the time is “right”, this may help you make your decision.
Contact me if you want me to run a particular scenario for you. My promise to you….accurate info, no pressure on my end.