Because interest rates are still low, owning your own home could actually save you money each month. Also, by making payments to your mortgage, you build valuable equity in your home that can help you achieve financial freedom down the line.
Depending on your circumstances, your monthly mortgage payments—including taxes, insurance, HOA/condo fee—could be less than paying rent. Here’s an example of a recent home for sale.
Monthly Mortgage Payment: $1299 (PITIA)*
Monthly Average Rent: $1600*
Location: Baltimore, MD
* Listing information and monthly average rent obtained from Bright.MLS
Payment example: Based on 3.875% rate as of August 7, 2019. Loan amount of $194,500, 100% 30-year fixed at 3.875% with an APR of 4.375%. The $1298.62 payment is comprised of $914.61 principal and interest, estimated monthly taxes $250.00, estimated monthly homeowner’s insurance of $40.00. PMI required estimated monthly payment $94.01. No HOA fee included in this example.
If interested in a similar home, contact Jeremy Walsh, Simply Referable Team
If you have a home property in mind, Tower can help you get the facts before making a decision. Your answers to a few simple questions will help you find the “after-tax” net cost of owning a house versus renting a house.
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For further assistance, please visit a branch or call our Member Service Center at 301-497-7000 or 866-56-TOWER.