Can I Afford NOT to Buy?

The first-time home buyer market often includes someone (or a couple) who are throwing away money on rent.

imagesFor example, a $900 mortgage, which includes $700 of interest, ends up totaling $10,800 a year in housing expenses. At the year’s end, $8,400 of that $10,800 mortgage paid is tax deductible.

On the flip side, $800 in rent each month totals $9,600 per year in housing costs.

With a 28% tax bracket, the mortgage holder paying the $900 mortgage payment actually saves $8,448 in that year. On the other hand, the renter ends up spending about $1,150 more than the person(people) who have paid a mortgage.

If you are paying rent, or know someone who is, it is important to know you/they can afford to buy. And, the earlier you buy, the earlier equity buildup occurs, giving value appreciation and tax benefits.

As a Realtor, I am a valuable resource during the home-buying process. If you, or someone you know is looking to make a move into a home to avoid paying rent, contact me. I look forward to helping you make the shift from renting to owning!

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