Thursday, February 18, 2016

Average cost to rent / Average cost to own

You may have heard talk about rising rents. By some estimates, the median monthly rent cost is about 25% higher than a typical monthly cost for owning a mid-priced home. Check out these quick stats:

*Costs to own are averaged historical samples only; they are not an offer to lend. Costs as follows: historical, annualized average prevailing first year monthly interest expense for a loan amount of $162,000 (10% down on a $180,000 home), taxes of $300, insurance of $40.50, Private Mortgage Insurance of $81. Actual expenses vary for any home and loan program; will include additional considerations for principal, maintenance, potential tax savings and appreciation/depreciation; and can be more or less than illustrated. Rates and fees for current scenarios available by request. Data is provided with rights for use by Estate of Mind, Inc.

As owners or buyers, we're all impacted by high rental rates in some way. Consider this:
  • Rising rents could push new homebuyers into the market, which could drive prices higher. Rising values may help with refinancing or even accessing cash for repairs, improvements, tuition or other expenditures.
  • High rents make it harder to save for a down payment. Fortunately, low down payment options are plentiful.
  • Rising rents improve potential cash flow opportunities on investment properties or vacation homes. The timing may be right to follow that dream.
If rising rents mean it's time for you or someone you care about to take action, please reach out. I'll be glad to help.

VanDyk Mortgage Corporation - 2449 Camelot Ct SE , Grand Rapids, MI 49546  

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