This might seem like an easy or maybe a trick question, but its important to know exactly what all the costs are when purchasing a new home. If you are like most of the buyers looking at a new home you plan on financing what will be the largest or nearly largest purchase of your life. If you are able to put 20% down and borrow $160,000 at 3.5% you will pay almost $299,000 dollars over the course of the thirty years for this $200,000 house. With property tax of maybe 1% per year you add $2,000 per year to your cost oh, don’t forget homeowners insurance, say $650 per year . The monthly payment comes to around $940. AAAAAHHH!!! I’ll just rent……Well the average rent in Charlotte is now above $1000 per month. AAAAAAH!!! I guess I’ll live in a box!!
The point is Homeownership is still affordable as long as you have your finances in order and with mortgage rates as low as they have been in history, with a very good possibility of going up in the near term, now is the time to buy.
What if I can’t afford to put 20% down? This is the gold standard and normally if you can’t put 20% down you will need to get Private Mortgage Insurance, yikes, another cost. This is where Scarlett Real Estate and our Partners at Movement mortgage come in……we can show you all the programs that are available to assist a wide variety of people to get into homes they can afford and begin to build the equity that most American’s strive to create. How do I find out if I qualify for these programs? Click the following link to find out more . http://davebitter.scarlettrealestate.com/finance/
Scarlett Real Estate and Movement Mortgage can provide everything from answers to finance questions all the way up to and including monthly free credit coaching to enable you to be pre approved and making an offer on the home you have always wanted to live in.
Source: myamoritizationchart.com, vhomeinsurance.com, charlotte observer.com