Whey rent when you can buy? Even though many homeowners are upside down on their mortgage, there are many who are buying their first home or are in a good position to upgrade. Someone considering renting a home needs to reconsider purchasing. Here is a scenario where it makes more sense to buy if one qualifies.

A family looking for a large 5 bedroom home in Northwest Tucson area for rent is going to pay $1600 to $2200 per month to rent a nice home of that size. And good luck finding a nice one to rent! However to own a home that size with interest rates around 4.25% on conventional mortgages as I write this, the mortgage payment would be around $1210 principle, interest, taxes and insurance (PITI). Not only that, you now get the mortgage interest deduction on your taxes! And if that’s not enough, while your home value may not rise any time soon, you’re paying down the principle on your mortgage thus building equity which is like putting money into savings.

So if you can’t stand the idea of throwing away about $20,000 in rent in a year, give me, Rob, a call at 520.282.1417 and I can connect you with a lender for per-approval if you don’t already have a good loan officer.

Advertisements