Is it financially better to buy a home or to rent? Our investment planner can help you decide if real estate is a good investment for you. The answer to this question depends upon how much the home costs (outright and in mortgage loans), how much you are paying for rent, and how much you will have to pay each year in order to maintain your home and pay interest with mortgage lending.
If you were to pay $800.00 per month, for example, and the average rental payment increase was 4.000%, you would pay $51,996.70 in a 5 year period toward rent. If you purchased a home and borrowed $250,000.00 with a 5.000% interest rate, and you paid $900.00 every year toward its maintenance, you would pay $116,241.99 in a 5 year period toward mortgage financing payments if your Federal tax rate is 26.000%, you pay $3,000.00 in taxes each year and your annual insurance rate is $1,500.00.
When you consider your tax benefits and the appreciation of your home, however, you will actually SAVE money by purchasing a home, even with home mortgages. If your home shows an annual appreciation of 5.000% and your selling cost is 7.000%, your house appreciation value will be $382,884.47. As a result, your total home purchase benefit will amount to $66,815.43.
Contact LeaderOne Financial Corp. in Kansas City, MO for a home mortgage company that can help you with financial planning and home loans.
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