Did you know that in the last 3 months, a 3 bed, 2 bathroom home in my neighborhood of Bethany Village sold for $515,000, according to RMLS data? Now, while the mortgage on that home crunches
To rent or to BUY, that IS the question!
Dated: May 16 2023
Did you know that in the last 3 months, a 3 bed, 2 bathroom home in my neighborhood of Bethany Village sold for $515,000, according to RMLS data? Now, while the mortgage on that home crunches out to be about $3700 a month, the portion of that payment that goes toward principal and interest is about what you would pay in rent on a 3 bed, 2 bath home with comparable square footage on the same street! IN FACT, it's less! Take a look at the amoritization schedule, shown below, to see the breakdown of those payments over time. As you'll see, the interest payment in month 1 for the property in question (and this is an actual property that recently sold compared with a similar rental on the same street) is about $2500. That's alot of money to be sure, but consider the fact that the rental down the street charges $2850 by comparison. Plus, while interest goes straight to the lender, as a home owner, you stand to recoup those costs in the steady appreciation that the home will accrue over time. Going further, when interest rates drop (and they will drop!), you can refinance the home and see a larger portion of your mortgage go toward the principal. Unfortunately, however when it comes to rent, your rates will likely continue to rise, not fall over time, and the money you pay to the property manager - aka - the homeonwer, will never be yours again.
So it stands to reason that it might be the right time to buy, despite higher interest rates. Connect with your local lender or call me today to discuss your options and weigh the pros and cons.
Bethany house sold for $515K" width="968" height="454" />
My motto has always been, 'Home is more than a place, it's a plan!' I base my entire business on this philosophy to ensure the success of my clients!I was born and raised in El Paso, Texas, but now ca....