Walter Seuell Realty
Walter Seuell
Walter Seuell Realty



With the recent rise in rents all across the Atlanta Metro Area, more and more people are comparing owning versus renting. Interest rates are still at historic lows. The average 30-year fixed rate mortgage coming in at 3.75% - 4.75% depending on your credit score. With the rates so low, buying a home could be much cheaper than paying rent.

One benefit of owning, the mortgage interest is a tax deduction. Let’s compare a person paying $800 per month for rent and another buying a home with a mortgage balance of $157,500 at 4.5% interest rate. The price of the home was $175000; the person put down 10% and paid their own closing cost. The Principal and Interest (called the PI) payment for the $157,500 loan is $798.03.  From this payment the interest portion would be $591 per month ($157,500 x .045 / 12). The annual interest deduction would be $7088 for the homeowner.

In today’s market, you could own a $120,000 home and be paying less than $900 per month, total payment (Principal, Interest, Tax, Insurance or PITI).



When crunching the numbers, you can see how interest rates are affecting home prices. As the rates go down, home prices increase. As the rates go up, you guessed it, home prices come down. The above is only one of the benefits of owning a home. In regards to tax savings, always consult with a tax professional before you decide. Your tax professional will be able to estimate your overall tax savings of owning versus renting. 

Stable Monthly Payment

How often have you had this happened to you, you are renting and it and once a year, the landlord raises the rent. That was my experience, especially if you always paid on time. With a fixed mortgage you never have to worry about your payment going up. Fixed Rate Mortgages are available at 30, 20 and 15 year terms. Rates for the 20 and 15 year Mortgages are usually lower than that of the 30 year.

Privacy

Privacy is another benefit of owning your home. No worries about landlord showing up on your doorstep, unannounced. For those of us that have lived in apartments, no more worries about noisy neighbors above or below you. You are free to customize your home to your liking.

Income

Your can also earn income from your home by leasing part or all.

This is just some of the benefits realized when you own your home.
If you can think of anymore please drop me an email or click the link below.


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