December 2nd, 2018 10:56 AM by Joan Rusco
This holiday season perhaps it’s time to give yourself and your family the gift of homeownership. 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 $1,000 where as a 3 bedroom home will rent for closer to $2,000. What could you buy for about $2,000 a month?
Using Zillow as our source the median home price in Minneapolis is $262,400. This means half of all homes sold in the metro area are price below this number and half are priced above. We’ll us the median price for our calculations.
Here’s the beauty of a VALoansMN mortgage, you do not have to have any downpayment. With your earned VA benefit you can finance 100% of the cost. The monthly payment for our median priced home would be about $1,409. That’s about $600 less than your current rent. 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 $300 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 VALoansMN (number for Brad above) then consult with an accountant or financial planner. A little due diligence may uncover a great holiday gift for you and your family. At VALoansMN we want to help you have a very HAPPY HOLIDAY SEASON.