To Rent Or To Buy a House

Rent- Buy? To ar to For those seeking stable monthly housing expenses, tax savings and a long-term investment, HOMEOWNERSHIP HAS MANY ADVANTAGES. For those who need to move frequently or cringe at the thought of lawn work, renting may be the best option. Markets will move up and down in the short term, but REAL ESTATE HAS CONSISTENTLY APPRECIATED OVER TIME. Homeowners Percentage of Renters planning to buy a home: Us. Renters On average, homeowners stay in their homes longer and are more engaged in their communities than renters, which leads to Midwest 67% nicer neighborhoods and more West Northeast involvement in civic activities. 70% 67% Homeowners are: 16% more likely to belong to parent/teacher organizations. 28% 287 Source: Trulia American Dream South more likely to repair or improve their home. more likely to 79% Survey, 01 2011 vote. 9% Percentage of Americans whose view of more likely to know who their school board representative homeownership has become More Positive over the past six months: 12% 18-34 year olds (Millennials) 26% more likely to maintain a garden! 35-44 year olds (Generation X) 18% 45-54 year olds (Baby Boomers, pre-retirement) 18% Source: Cincinnati Office of the Neighborhood Reinvestment Corporation 55+ TOO 22% (Baby Boomers, about to retire or retired) Source: Trulia American Dream Survey, Q1 2011 31 to 46 Times Historically, a homeowner's Net Worth ranges from that of renters! Source: United States Federal Reserve Renting is always less expensive than owning. Myth! A fixed-rate mortgage might not change for 15 to 30 years, while rent typically increases about 5% per year. In many cases, the amount of money a homeowner spends OVER TIME can be much less than what a renter spends. With the homeowner's tax benefit, the savings can be significant. In this example, the renter starts out paying $800 per month with annual increases of 5%. The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000. With tax savings, after 3 years the homeowner's monthly payment is lower than the renter's. RENT MORTGAGE YEARLY DIFFERENCE FOR YEAR: PAYMENT: PAYMENT: HOMEOWNER AFTER Tax SAVINGS: $800 $1,000 -$600 $840 $1,000 -$120 $882 $1,000 +$384 $926 $1,000 +$912 $972 $1,000 +$1,464 6. $1,021 $1,000 +$2,052 $1,072 $1,000 +$2,664 8-30 SAVINGS INCREASE EVERY YEAR! Source: Ginnie Mae (Government National Mortgage Association), 2011 18% Average 30-year fixed 16% mortgage rate, 14% June 1971 - June 2011 Mortgage interest rates 12% 10% remain at Historic Loшs. 8% 6% 4% 2% 0% Source: Freddie Mac (Federal Home Loan Mortgage Corporation), 2011 June, 1971 June, 2011 7.53% 4.52% 78% of U.S. homeowners say their home is the Best Investment they ever made. Source: Trulia American Dream Survey, 01 2011 $250K Median U.S. home values, $200K June 1971 - June 2011 $150K $100K $50K $0 Source: United States Census Bureau, 2011 June, 1971 June, 2011 $26,100 $235,200 Home values have consistently Risen Over Time. Created by: Mortgage Refinance. Copyright © 2011 MortgageRefinance.comM, a subsidiary of SiteTools, Inc. All Rights Reserved