Here’s a big splash of reality for you, whether you own a home or not, you’re already paying a mortgage.
A common reason for renters to postpone buying a home is fear of commitment – to a mortgage payment that is. The fact, however, is that unless you’re living rent-free with mom and dad, you’re already paying a mortgage: your landlord’s.
When you rent, you’re paying down the principal of a landlord plus a rate of return instead of reaping your own tax benefits of owning.
What if you could allot the same amount for rent to a 30-year fixed rate mortgage instead? That way your housing expense is locked in and set. The only thing you can guarantee with your rent is that it will increase as time goes on. According to the USC Casden Forecast for 2014, Southern California rents will raise more than 8% in the next two years.
As an owner, the mortgage payment is a ‘forced savings’ which will allow you to have equity in your home you can tap into later in your life. As a renter, you guarantee the landlord is the person with that equity.
Review your options – you have more than you think
Kinda starting to feel like you’re in a not so healthy relationship with your rent, doesn’t it? We’re not saying it’s time to break up, just time to review your options. A good place to start is with Fannie Mae and Freddie Mac who have started backing loans with as low as 3.5% down.
Also, 87% of homes in the U.S. qualify for down payment help according to a recent study from RealtyTrac. All you have to do is sit down with a real estate loan specialist and start asking questions about how you can get into a new home.
That refreshing splash of reality is feeling pretty cool now isn’t it? If you’re ready to start learning more about your options, chat with a First Team agent. We work with some of the best real estate financial experts in the business to help you find the best deals and strategies for the current market. Search for an agent online or reach out and we’ll connect you with an expert near you.
Email us at clientservices@firstteam.com
Call us at 888-870-1142
