rent or own?

Mortgage and Lending with Augusta Financial

I don't know if I was raised to think the way I do, but growing up I always thought about what I wanted in the future.  I thought, I wanted to go to school at UCLA and play basketball under coach Wooden, then play for the Lakers.  As I got older my dreams became more realistic, I wanted to get married, have kids, own a house and become financially independent.  Now that I have achieved most of those things I have other goals and they are to grow my business and spread the word to clients that Real Estate is and always will be a great investment if it is handled correctly.

So why would you buy a home in a real estate market that has no real direction.  By no direction I mean in one area, we may have prices that are increasing and in another area not too far away the prices are decreasing.

The answer is, it is simple math!!!

If you purchased a home last October for $400,000.00 and got an FHA loan with 3.5% down you would have a payment with taxes and insurance at $2694.40 including taxes and insurance.   if you purchase that same home today for the same price your payment would be $2891.51.  Almost $200.00 in 6 months??  So to keep your payment at $2694 now we would have to buy a house that is priced at $372,000.00.  That means values would have had to go down 7% in 6 months and we all know that they have not gone down that far.  Also in the past 6 months you would have paid off $3216.00 plus you would have been able to write off all of the interest and property taxes you paid.  

If interest rates go up to 5.50% add another $200.00 per month or take away another 7% in purchasing power!  If you are paying rent now, you need to really consider buying something soon.  Yes there are still a lot of people that are short selling their houses or losing them in foreclosure, but with gas prices and inflation on the rise interest rates could go up dramatically in the next 12-24 months. 

Also your principal and interest payment will never go up and we all know that landlords will try to raise your rent whenever they can!

President Franklin D. Roosevelt said "Real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, and managed with reasonable care, it is about the safest investment in the world." 

Invest in yourself, invest in a home and do it soon before rates get out of control.

Posted by

Mike Meena - Augusta Financial 

Direct  -661-291-2222 / Cell -661-714-6258 / office - 661-260-2970 / Email -

I have been one of the top loan officers in California for the past 10+ years. Last year I closed over 450 loans which is nothing in comparison to what I was able to accomplish when the guidelines were easier in the early 2000's. I have been in the mortgage industry since 1990 and my job is to make sure that my clients and my loan representatives clients are given the best loan experience ever. We are a service based mortgage company which means we will close every loan on time! We have 20% more staff than most mortgage bankers our size so we can simply get our clients files through faster than anyone. Our reputation is on every file, so we have to close every loan on time! We currently have our main office in Santa Clarita California, and we also have offices in Lake Forest, Burbank, and one coming soon to Sherman Oaks. We are accepting applications for loan officers and also accepting applications for new branches. Please contact me if you are interested in learning more about Augusta Financial! 

Comments (1)

Larry Story ALC
Total Care Realty - Greensboro, NC
Beneath it all is the Land, Covering all of NC


Wise words for the unsure. Hopefully some will heed your advice and do the math themselves. 

Apr 14, 2011 03:56 PM