Do you live rent free????
If you answered no, then you are probably paying someone else’s mortgage while also building someone else’s net-worth. So how do you stop paying other people’s bills?? You buy your own house and pay your own mortgage. Home-ownership allows you to start building your own equity and allows you to eventually stop paying rent all together.
In addition to equity, home owners have a handy mortgage-interest-tax- deduction at the end of the year. Now is still a great time to buy as interest rates are still low and although home prices have rebounded, they are still relatively low in most areas.
Furthermore as an article by Keeping Current Matters explains, “If you purchase a home with a 30 year mortgage your payments are essentially locked in” this is in stark contrast to renting where you can rest assured your rent rates will go up to match inflation and demand.
Many renters are under the impression that they could not afford something as nice as they could rent. In Grand Rapid this is not the case. The average rent for a 2 bedroom downtown apartment is well over $1300 per month and rising. A $200,000 mortgage including taxes and insurance would be around $1315 a month over 30 years (this example is based on an APR of 4.25% and a 3.5% down with mortgage insurance, taxes, and insurance). In Grand Rapids and most areas of Michigan you can get a very nice home for this price.
The first step is to see what you qualify to borrow. Call us today to see where you are at and get a plan in place! Break the cycle of renting and become a first time home buyer today!