Stop Paying Rent

Owning your own home is part of “The American Dream”, but is it really all that different from paying rent each month?  Even more important, how can you afford to buy if you don’t have much cash for a down payment?

Think of it as a savings plan

If you’re renting, you’re already making a monthly housing payment. The problem is, your housing dollars are only paying someone else for a place to live. When you move, you have nothing to show for the thousands of dollars you have spent.

Monthly Rent 1 year 3 years 5 years 10 years 15 years $600 $7,200 $21,600 $36,000 $72,000 $108,000 $700 $8,400 $25,200 $42,000 $84,000 $126,000 $800 $9,600 $28,800 $48,000 $96,000 $144,000 $900 $10,800 $32,400 $54,000 $108,000 $162,000 $1,000 $12,000 $36,000 $60,000 $120,000 $180,000 $1,100 $13,200 $39,600 $66,000 $132,000 $198,000 $1,200 $14,400 $43,200 $72,000 $144,000 $216,000 $1,300 $15,600 $46,800 $76,000 $156,000 $234,000 $1,400 $16,800 $50,400 $84,000 $168,000 $252,000

When you buy a home, your payments are going toward purchasing your own home, which grows in value long term. In addition to that, you could save on your income tax each year. You can even think of purchasing your first home as a savings plan to help purchase your dream home!

Low down payment financing is available

The beauty of home ownership is you can invest a relatively small portion of your own money to purchase your home. Although 100% financing may no longer be available, conventional financing is still available with only 5% down, FHA financing only requires 3% down, and other financing programs may also be available.

A sound investment

When you buy your own home a portion of your monthly payment is going toward paying off your mortgage. Meanwhile your home is most likely appreciating in value every year, and you may get to deduct a portion of your mortgage interest from your income tax!

Let’s estimate, for example, your first year of home ownership if you bought a house for $193,000 with 3% down and added closing costs to your purchase price to finance your closing costs.

The information below is for illustrative purposes only.  Although calculations are believed to be reliable, they are based on certain assumptions whose accuracy cannot be guaranteed. Speak with a mortgage lender to find the best financing options for your unique situation and to receive a Good Faith Estimate.