Why home-ownership is a favorable choice to renting:
Monthly payments for a home you own are less expensive than one you rent.
Homeownership gives a person a feeling of success.
Historically, homeownership is a great investment.
Investing in a home is one of the few investments that you can immediately enjoy, starting the day you move in!
When you own your home, you are free to do what you want with the home and do not have to get approval from your landlord.
The U.S. Government finds it beneficial to have more homeowners as well and to entice you, has established several tax deductions to help make owning a home an even better investment. Basically, the “net” cost of owning a home is much less than it initially appears!
How much “home” can you afford?
There are a lot of factors that will determine exactly how much home you can afford, but generally, experts believe that a homebuyer shouldn’t pay more than 28% of their gross monthly income for their mortgage payment (which includes principle, interest, taxes and insurance or PITI); or 36% when they combine all monthly debts together with the PITI payments.
The easiest way to make a quick estimate of the mortgage amount you could afford is to divide your gross annual income by 12, then multiply by 28% (or 36%, if you’re using the second method).
Keep in mind, your monthly payment will vary according to the amount, interest rates, length of your mortgage, whether or not your loan requires mortgage insurance, and a whole host of other factors. Do yourself a favor and let a professional run your numbers for you. They do this free of charge and the Ferris Property Group has several lenders that are available to call you now!
How the Ferris Property Group can help:
Let us know what you’re spending on your rent and we will show you what that equals with homeownership.
We can provide you a list of qualified lenders to help you get pre-approved for a loan, as well as figure out what you can afford.
There is no cost to you when you work with the Ferris Property Group to purchase a home!
Contact a member of the Ferris Property Group to discuss whether purchasing is the right move for you!