Housing Affordability ..... Obviously means that today's buyers can get the most home for their purchasing power in quite some time.
Interest rates are so fabulously low now that you would be absolutely surprised at what you can afford to buy vs. rent. I am going to give you a true example so you can clearly see my point. Renting is an option for you but is it the best financial option for you?
Crunch the numbers for yourself in this Buy vs. Rent Calculator and see where you come out. (use 4% as the current interest rate)
Mom #1's Scenario - Divorced mother with one tween daughter. Rent is going to get raised to $1000 per month and she's had it. In that particular complex where 'Mom #1' lives they have a strange way of charging for monthly 'extras' so I just call it what it is - ala carte fees. Water is not included, this isn't included, yada yada yada. So 'Mom #1' feels and finds that she can purchase a home on her own and pay less in a mortgage payment to the tune of at least $200 per month. That's a good chunk of change that is freed up for other things. We begin our search ........
We purchase a foreclosure in Schaumburg that will need updates including new carpeting etc. Super price on this 2BR townhouse is won using online bidding. Mom #1 uses the FHA 203K rehab loan where a certain portion of those updates will get financed back into the loan. On top of being financially savvy, Mom #1 has a fabulous agent, me, and we get her First Time Homebuyer Assistance funds totally $10,000 for her downpayment & closing costs. Mom #1 also gets to put only $150 down on that HUD foreclosure because they are literally running a special.
Benefits on this Scenario ~
203K FHA offers newer items helping to add value and updating
$10,000 downpayment help
Rental payment $1000 per month
Housing payment now $785 including the association fee
Savings = $215 (cha-ching .....)
I would love to work with you and sell you a home but you must see if it works for you financially! Use the calculator, give it some serious thought and crunch those numbers. Maybe home ownership is for you and maybe it isn't.
Never know unless you give it a try!
Schaumburg Townhomes, Condos Search
$75,000 to $150,000
Hoffman Estates Townhomes, Condos Search
$75,000 to $150,000
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