News Byte:
"Coulda, Woulda, Shoulda"
So long, farewell to the Home Buyer Tax Credit... but it's still a great time to buy a home... probably the best time ever! If you have a home under contract prior to April 30, 2010 then you may still be able to take advantage of the tax credit.
But if you're in the market for a home and you didn't get a chance to capitalize on the tax credit all is not lost. With property prices already low and staying relatively flat combined with truly historic low interest rates, a home buyer can capitalize on the best of both worlds. Rarely is there a time when both housing prices and interest rates are this low at the same time.
Buying a home now can save you 1000's as opposed to buying later. Why???? Because when interest rates move up a 1/2% to 1% that can increase your housing payment by $300 - $400 per month or more depending on your loan amount, not to mention the additional cost of housing when prices begin to move up. So take advantage of the market while you can instead of later saying, "Coulda, Woulda, Shoulda."
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Rent vs. Buy
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Are you throwing your money out the window by renting?
This Renting vs. Buying Comparison illustrates the real cost of home ownership for renters with a year income as compared to a $1200/month rental payment. The results of this analysis show the tenant is losing in excess of $650.00 each month by renting. This includes the tax considerations and a modest appreciation rate of 3 percent, which historically is a low appreciation rate.
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Take the test yourself . . . . get your
own analysis, using your numbers, and learn how buying a home today compares
with renting. Email cheryl@DenverRealty.com to request a rent vs. buy
comparison for you.
Renting vs. Buying
FHA LOAN
DENVER, CO |
| Taxable Income/Month |
$ 4,167 |
| CoBorrower Income/Month |
0.00 |
| Non Taxable Income/Month |
0.00 |
| Exemptions |
2 |
| Married |
YES |
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| Sale Price |
$ 230,000 |
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| HUD Reposession |
No |
| FHA Condo |
No |
| Number of Units |
1 |
| Interest Rate |
5.000 |
| Term on 1st Trust Deed |
30.0 |
| Down 3.50% |
$ 8,050 |
| 1st TD |
$ 221,950 |
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| MIP 1.75% |
3,884 |
| Total 1st TD |
$ 225,834 |
| Payment 5.000% |
$ 1,212 |
| Property Insurance 3.60% |
69.00 |
| Property Tax 1.00% |
$ 192 |
| Mortgage Insurance 0.55% |
$ 101 |
| Association Fee |
0.00 |
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| Total Pmt/Month |
$1,575 |
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| - Tax Savings |
$ 185 |
| Costs/Month |
$ 1,390 |
| Principal Paid |
$ 271 |
| Appreciation 3.00% |
$ 575 |
| Effective Cost |
$ 543 |
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| Rent/Month |
$ 1,200 |
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| Buy/Rent Difference |
$ 656 |
REALPRO INNOVATIONS
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