Buying vs. Renting in Lancaster, CA.
Nearly a full third of households are still renting. If you're one of them, you could be paying a hefty price.
Before talking about purchasing a house, it's important to note two things. First-and this is extremely important-the housing market is actually localized. Since home prices are tied to employment the importance of job stabiity is a big concern.
But with all those factors under consideration, it still makes sense to buy instead of rent. In fact, renting may be costing you a bundle.
Let's look at an example...
If you are paying rent at $1,500 per month and your landlord increases your payment by a modest 5% each year, you would wind up paying just about $100,000 over a 5-year period! Worse yet, after forking over $100,000, you still would have nothing to show for it.
And speaking of having nothing to show for it, how about any improvements you might make to a rental property? It's not uncommon for renters to freshen up the paint, install new light fixtures or plant some nice flowers outside. But guess what... all your efforts, labor and the benefit of that improvement belong to the landlord, not to you.
With convenient down payment options still available for qualified buyers, affordable home prices and low interest rates, the very same money could have been used towards home ownership.
Even using a standard 30-year fixed program, a mortgage of $150,000 could be obtained with a total monthly mortgage payment-including property taxes and insurance-of around $1,055. Assuming a 25% tax bracket, this would be equivalent to $850 spent on rent during the same period after your tax benefit! Try to find something nice for your family in that price range!
And the benefits of home ownership are quite considerable. Because the mortgage is being paid down each month, equity is being built. After 5-years, the $150,000 mortgage could be reduced to $135,000, adding $15,000 to your net worth!
Don't fall victim to the national headline hype. Talk to a professional who understands your local market. And remember, buying a home is a big step, but it is almost always one in the right direction.
Call me today and Ill help you get started... Find out how much home you can qualify for using the same rental payment your making now!
Ryan Morrow
Loan Officer Frost Mortgage Lending Group
Cell: (661) 992-2216
Email: Ryan_Morrrow@FrostMortgage.com
Apply online: WWW.MORROWMORTGAGE.COM
