So VA mortgage rates have gone up but it still may make financial sense to consider buying a home. We’re going to spend some time in the next few paragraphs re-examining the question: should I continue renting or should I buy? First, we need to spell out a few assumptions necessarily made for comparison purposes.
If you are currently renting an apartment or house it may be time to take the plunge and become a homeowner. There are several advantages:
There are some disadvantages as well and at VALoansMN we want you to have the complete picture:
Perhaps a major factor in this consideration is money. Keep in mind we’re using the generalizations outlined above in our money discussion.
Cost of rent can vary depending on the size. A studio can rent for around $1,300 where as a 3 bedroom home will rent for closer to $3,500+. What could you buy for about $3,500 a month?
Using Redfin as our source the median home price in Minneapolis is $300,000, down almost 5% from a year ago, St. Paul $254,000 down about 2%, however, Eden Prairie was up almost 19%. This means half of all homes sold are price below this number and half are priced above. We’ll us the median price of $300,000 for our calculations.
Here’s the beauty of a VALoansMN mortgage, you do not have to have any down-payment. With your earned VA benefit you can finance 100% of the cost. The monthly payment for our median priced home would be about $2,000. That’s less than your current rent for 2 or 3 bedroom apartments. Of course there are property taxes to pay.
Minneapolis tax rates are higher than the state in general so we’ll use worst case scenario. Taxes on our median price Minneapolis home will run about $400 a month. Then there’s homeowners insurance of about $100 dollars. (You should also be paying insurance as a renter which will likely cost about half the cost of the homeowners insurance). Add up the numbers and you can see you can actually save money by owning your own home.
We need to emphasize that we’ve used very general numbers for this illustration. To drill down on your real costs start with a call to Brad at VALoansMN (number for Brad above) then consult with an accountant or financial planner. A little due diligence may uncover a great spring for you and your family.
Do you have a question? We can help. Simply fill out the form and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.
Brad Christensen
Mortgage Loan Originator
NMLS# 290074
612-240-9922
2523 S. Wayzata Blvd. Suite 300
Minneapolis, MN 55406
© 2024 All Rights Reserved | Luminate Home Loans, Inc.
Privacy Policy |
Company Licenses |
NMLS Consumer Access NMLS# 150953
Brad Christensen NMLS#290074 works for nationally recognized Luminate Home Loans, Inc. NMLS#150953. VALoansMN is not affiliated with the Veterans Administration or any government agency. Luminate Home Loans, Inc. NMLS# 150953 Corporate Headquarters: 2523 S. Wayzata Blvd #300,Minneapolis, MN 55405. NMLS ID #150953 http://www.nmlsconsumeraccess.org. Toll Free (800) 270-3416. This advertisement does not constitute a loan approval or a loan commitment. Loan approval and/or loan commitment is subject to final underwriting review and approval.