Are you tired of paying rent for your apartment?

Wouldn't you really like to buy a home of your own?

With rental rates the way they are today, you may be able to buy a home.

Here are the actual rental rates for one apartment complex in Whittier: 

Let's say you need 2 bedrooms and 1 bathroom.  OK.  Your monthly payment will be at least $1,325.  Your move-in costs, including first and last month rent, plus the security deposit of $600, will cost you $3,250.

How would that compare with buying your own house or condominium?

Let's say you really want a small, 2 bedroom house, rather than a condominium.  Oh, and you also really want a small garage, that you can use either to park your car or for storage.

With today's interest rate of 5%, and a low 3.5% down payment FHA loan, you could buy a $250,000 house for a monthly payment of principle and interest for about $1,325 a month.  Of course, you also will have to pay property taxes and insurance, which would bring your total monthly payment to about $1,790.

But, remember, since the interest on your mortgage is deductible from your income taxes, you will be able to write off about a third of your payments.  One third off $1,790 will bring your total monthly expenses (after income tax deductions) down to about $1,200, which is actually less than your monthly payment for rent.

Now, your move-in costs for an apartment are not too high, in this case, at $3,250.  But, wouldn't you rather apply those move-in costs toward purchasing a real home that will become yours?

Let's go over the closing costs for buying a $250,000 home, with the assumption that you are going to use an FHA loan, with a 3.5% down payment, and an interest rate of 5%.

First, your down payment of 3.5% will be $8,750.

Some of the other closing costs will include loan origination points, recording, title insurance, escrow fees, property taxes, insurance and other miscellaneous fees involved in the transaction.  A very rough estimate of these closing costs will be approximately $11,600. 

So, for this typical purchase, your total out of pocket cost will be about $20,350.  Are you having trouble getting the cash you need for the down payment and closing costs?  See 10 Ways to Come Up With a Down Payment for some ideas.

The best deals in buying a home now are in bank owned properties.

Today, there are 14 bank owned homes in the City of Whittier that are for sale for under $250,000.  Seven of them also have garages.

Don't you think one of them could be your next home?

Note:  These figures are only estimates.  See your lender for accurate amounts.

-Blog End-

 
Bob Willis, Realtor®
Prudential California Realty
16218 E. Whittier Blvd.
Whittier, CA   90603
DRE License # 01788371
Phone:  (562) 639-9400
Email:  bob@willisrealtor.com

Search for your new home online at http://myhome.listingbook.com

Learn more about Whittier real estate at http://www.WhittierWelcomesYou.com.