Jul
23

Renting vs Owning

 

Rent vs Buy Logo

Whose mortgage are you paying?

It should be your own! If you think you can’t afford your own home then maybe you should think again. More and more first time buyers in Sonoma County are finding they save money when they buy their own home instead of renting.

RENTS ARE HIGH in Sonoma County and not getting any lower.  In fact, rents in the Bay Area are now nearly 3 times the national average.  That’s a lot of money that your landlord is using to pay off their mortgage.

RATES ARE GREAT and down payment requirements are minimal. The type of mortgage you qualify for will determine how much cash you need to put up and what your interest rate will be but some borrowers are getting rates as low as 3% right now. That means that you can afford twice as much house now than when rates go back up to 6%. If you’re a vet, a teacher, a first time borrower… there are all kinds of special programs to help you become a home owner.

IT COULD BE CHEAPER TO OWN According to a recent survey in SF, buying is about13% cheaper than renting a comparable home. Our market is comparable to that. However, as most of you know, rates are projected to go up and so are home prices so now really may be the best time to do this.  Most renters feel they can’t afford to enjoy their own home but it just might not be true.

If Your Rent Is You Could Buy A HOME[1]
$1,800 About $420,000
$2,200 About $500,000

 

THERE IS PRIDE IN HOMEOWNERSHIP… you have the freedom to fix up your home because it’s yours.  You can have greater privacy, and own pets. You also get to deduct all the mortgage interest you pay, which is almost your entire payment. You can’t do that with your rent.  Stop throwing away your money on rent and instead take pride that every dollar you put towards your mortgage you are investing in yourself and your future.

To find out more about what options are available to you, give me a call, I would love to be your real estate advocate.  Start owning YOUR own equity and take charge of your financial future!

Tesa Walters

707-843-5949

Tesa.Walters@PacUnion.com • www.TesaWalters.com

REALTOR®, License# 01952022

[1] Based on qualifying for a 30 year fixed FHA loan with a 3.5% mortgage rate with a 3.5% down payment.