Ouch! Renters are spending more than 31% of their paycheck paying their landlord’s mortgage. Wouldn’t it be nicer if that money was going into your pocket and boosting your financial future?
I hear from some renters that they’re afraid of having a mortgage. But the reality is everytime you make a rent payment you’re actually paying a mortgage; just not yours.
Washington DC is the fourth most expensive city in the nation to rent a home. The average cost of a one bedroom rental is well over $2000 a month. For that money you can own a 1-2BD home in some of the hottest neighborhoods across the city.
For example: with a home purchase of $400,000 and a down payment of 5% at an interest rate of 4.25%, your monthly mortgage payment would be $2,245. And don’t let the down payment intimidate you. The DC Open Doors program offers down payment and closing cost assistance to any Washington DC home buyer making less than $123,395/yr.
Using the Federal Housing Finance Agency’s online calculator, if a home buyer bought a home in 2013 for $400,000 and sold it this year they could expect to get more than $465,000 for the property. That’s $65,000 in expected equity! As a renter, the only person able to take advantage of home equity is the person who owns the property. Your landlord: $65,000; You: $0.
But don’t give up hope!
There’s no time like the present to start planning to buy a home. Here are some steps to get you started:
If you’d like to discuss your home buying options, please give me a call. I can help you get on the path to home ownership and building your financial security. Call/text: 703-963-0142; Email firstname.lastname@example.org.