Rent is 100% interest and is subject to increase. A mortgage is fixed and you build equity based on the entire value of the home even though you may have made a very low down payment.
You might be very pleased to know that you could buy a home and keep your housing payment the same or even less than what you have been paying.
Have to stopped to consider that if you were paying $2,000 per month in rent that over 5 years you give the landlord $120,000!
| Current Rent
|
Approx. $ales Price | Gives to Landlord
Over 5 yrs. |
Approx. Equity
@ 4% for 5 yrs. |
| $ 800 | $120,000 | $48,000 | $24,000 |
| $1,000 | $145,000 | $60,000 | $32,000 |
| $1,200 | $175,000 | $72,000 | $35,000 |
| $1,400 | $205,000 | $84,000 | $41,000 |
| $1,600 | $235,000 | $96,000 | $47,000 |
