Do you care about property taxes? In some places property taxes can exceed the mortgage payment. I'm not that bad but my property taxes are close to 60% of my mortgage payment
60%? Damn! My $965 mortgage payment includes my property taxes. I live in a good neighborhood, 3 bedroom, 2 bathroom, 2 car garage house on an average subdivision size lot.
Our mortgage with taxes and insurance is about $1400 per month. When we were renting, we paid about $1000 a month, but that was for a place a third the size of our current house. With a few exceptions, I don't really get why anyone would choose to rent with housing prices and mortgage rates so low right now.
Yeah. I live on Long Island and property taxes here are completely screwy. My mortgage is $1800 and property taxes are about $1000 a month. That's for a nothing special, typical middle class home, though my lot is bigger than average for the area.
Go a mile in one direction and the same house is taxed at about $6000. A mile in the other and the taxes would be close to double what I pay.
With a rental you have no liability for any needed repairs, including repalcement of most major appliances. Looking at only the mortgage payment verses rental cost usually ignores that added expense of home ownership. Paying a 30 year note that includes the cost of appliances and materials (e.g. carpet) that will likely last far less time is not as thrifty as one may think.
Some lenders require both the taxes and the insurance to be escrowed, in addition some people have PMI that is part of their mortgage payment which can vary with their risk of default. I think the FHA PMI is now around 1.5% and does not drop off when you get to 22% equity like it used to.
Ours is significantly above $2K but involves multiple properties. We opted for a 15 year term and have refinanced once to get a lower rate but are still on the same 15 year payoff plan. Actually we are ahead of schedule as we have made extra principle payments so it will be more like a 12 year plan. We continue to make the original payment amount from the first loan even though our payments technically dropped several hundred dollars per month on the refi even with cash out to replace two roofs. I also have other mortgages on other properties that are held in the name of fictitious entities, but most of those are held by a private individual who really doesn't care when we pay him because these loans are low interest payable within a year of demand notes as part of his estate planning scheme.
With a rental you have no liability for any needed repairs, including repalcement of most major appliances. Looking at only the mortgage payment verses rental cost usually ignores that added expense of home ownership. Paying a 30 year note that includes the cost of appliances and materials (e.g. carpet) that will likely last far less time is not as thrifty as one may think.
I suspect that if you stick to the same quality of appliances and materials that an average apartment complex uses, owning a home will still be considerably cheaper.
Wow. I didn't realize property taxes were that high there. I paid $1,650 in property taxes for the whole year (in 2012).
With a rental you have no liability for any needed repairs, including repalcement of most major appliances. Looking at only the mortgage payment verses rental cost usually ignores that added expense of home ownership. Paying a 30 year note that includes the cost of appliances and materials (e.g. carpet) that will likely last far less time is not as thrifty as one may think.
Wow. I didn't realize property taxes were that high there. I paid $1,650 in property taxes for the whole year (in 2012).
Right, but the flip side to renting is that the landlord has financial incentive to hold off replacing old appliances as long as possible. Many landlords won't do maintenance or replacement until they absolutely have to.
Paid off the mortgage last November, 17 years early. Driving factor on that was a combination of the mortgage company being the worst one in the country (details upon request) and a savings account earning .004% versus a mortgage with an interest rate of 5.25%.
I had been paying $551, not inclusive of taxes and insurance, which were paid separately. Taxes are $1800 a year (4 acres lake front) and insurance is $800 a year with full coverage and replacement.
Sounds like Bank of America.They suck!!!:mrgreen:
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