Although you may be on the fence if buying a home now is right for you, but homeownership is a numbers game. As a Mortgage Loan Advisor, I want to help as many people as I can with the right tips and tools needed so you can be successful in your decisions when it comes to being a homeowner once you are ready.

One tip being, making sure this purchase is affordable to you and your family. After all, we cannot have you house poor. You do need to eliminate your fear of taking the plunge and purchasing a home. Have you done the numbers for owning vs. renting? I wanted to share this with you should you be getting cold feet but overall motivate you that this step towards homeownership is in the right direction. 

Not only is homeownership the biggest purchase of your life, but it is also hands down, the best investment opportunity for you and your family. Long-term owning a home offers more financial benefits that renting.

See below. Look at the Comparison Example. Does this hit home?

Renting                                        Owning                        Difference

$2,000 per month                        $450,000               5yrs house value increase 6% per year

Renters Ins. $30 per month           20% down                      Renting cost = spent $121,800

5 Year total cost -$121,800          Loan amount $360,000   Owning/equity: Net Value $31,500

                                                      Interest rate 6.5%           $153,300+ for home ownership 

                                                     Monthly Principal & Interest $2,275

                                                     Value of investment $31,500

Based on the figures above:
               
As a renter, you’re spending $121,800 over a 5-year term and have nothing to show for it except Security Deposit (if you get that back from the landlord).

As a homeowner, you are Positive $153,300 and what do you have to show for it? Stability, security, and accrued home equity.

What can you do with home equity? You can cash out on your homes equity to pay off or consolidate debt, send your children to college, or even use those funds to invest in another property that can generate passive income for you. The goal is to work smarter not harder, right? 

Remember get pre-approved first so that you can know what you can afford. Then you can begin shopping. Once you find the home you love, send me the address so we can draw up more accurate figures for you regarding monthly payment and cash to close, tailored to that specific home.