Did you know that 1/3 of the households are still renting?
My Mortgage Broker, Melinda Movick, sent me an interesting study on the benefits of owning verses renting. She said that if you pay $1500/month in rent and your rent goes up 5% a year...over 5 years you will pay about $100,000.
If you get a mortgage of $300,000 and have a payment of $2,200 that includes property taxes and insurance...adding the benefit of the tax break....you would be paying about the same as the $1500/mo rent. Plus you would have accumulated $21,000 in equity!
Something to think about for those of you still renting!
Melinda is at Community Lending Services and can be reached at 314-960-9084 or melinda@movick.net
You did not add in the cost of maintainance and repairs.
Posted by: stljoie | March 15, 2010 at 12:28 PM