Recently, we ran across a study that reported nearly half of America’s renters spend 30% of their monthly income on rent.
This figure alone is quite high, but you can only imagine how this is exacerbated in our area given the lack of affordable housing. To rent a 3-bedroom home in our area, you’re looking at spending upwards of $1,500 a month or more.
What if I told you, however, that you could buy a $250,000 home and have a mortgage payment only slightly higher than that amount?
Whether you buy a home or rent one, you’re paying someone’s mortgage. Why not pay your own and start building equity? When you rent, you aren’t investing anything in yourself. All things considered, it’s actually more affordable, and more economically sound, to buy your own home.
Better yet, many of the homes in Carroll County are eligible for the USDA loan, meaning you could buy a home without any money down. There are income and location restrictions, but the USDA loan is just one of the options available to buyers in our area. You can also secure a home for just 3% down using a conventional loan, or for 3.5% down with an FHA loan.
Another point to consider is that homeownership carries a number of tax benefits. As a homeowner, you can deduct mortgage interest payments, and potentially your mortgage insurance (contingent upon your income), from your taxes.
Ultimately, the choice is clear. Homeownership is always a sound investment.
If you have any other questions or would like more information, feel free to give my team or me a call or send us an email. We look forward to hearing from you soon.