Buying Is Cheaper Than Renting... See Examples

When someone decides it’s time to buy a home most homebuyers don’t know where to start. Below is a monthly payment breakdown that is very helpful so that you have a better understanding on what the payments will be on a certain priced homes.  It will also show how you can keep you monthly payments down and make owning a home actually cheaper than renting!


 

Monthly Breakdown #1

Based on a $300,000 purchase price, taxes of $9,000 ry and H/O insurance of $1,200 yr

97% LTV (3% down) Conventional Loan at prevailing rate

Prinicple & Interest $1,519
R/E Taxes $750
H/O Insurance $100
Mortgage Insurance $278
Monthly Mortgage Payment $2,647
Potential Rental Income $1,200

 

Your Net Monthly Payment         

 

   $1,447

 


 

Monthly Breakdown #2

Based on a $400,000 purchase price, taxes of $10,000 yr and H/O insurance of $1,200 yr

97% LTV (3% down) Conventional Loan Prevailing Rate

Prinicple & Interest $2,025
R/E Taxes $833
H/O Insurance $100
Mortgage Insurance $371
Monthly Mortgage Payment $3,329
Potential Rental Income $1,200

 

Your Net Monthly Payment         

 

   $2,129