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Why Rent...
We've all heard the saying "your throwing your money out the window" before.
Well its true...
Tax benefits can provide homeowners lower monthly payments in the long run.
RENT: $800 OWN: $900 - Mtg/Tax/Insurance
By deducting the mortgage interest and real estate taxes
your total monthly payments would actually be lower.
Another way to look at is the $800 monthly rent
actually requires about $1200 in income.
(using "after tax" money - based on 25% tax bracket).
Buy now to build equity instead of waiting to save enough for a down payment.
Many people save for a downpayment only to find that homes went up in cost.
Here are some of the ways to buy a home with no money down.
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One Loan - Financing 100% of the purchase price or value of the home.
Private Mortgage Insurance (PMI)* may be required - and is now tax deductible.
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Two Loans - An 80% 1st Mtg and 20% 2nd Mtg - piggy-back or 80/20 loan.
Adding a 2nd loan eliminates PMI, and the interest may be tax deductible.
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Seller Carry Back - Seller provides a second loan instead of a downpayment.
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105% Financing - Borrow more than the purchase price to pay closing costs.
* PMI - Insurance that protects the Lender in case you default on your loan.
Required when you finance more than 80% of the home's value.
Ask me how to qualify for these and other programs.
Rent v. Buy Calculator
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