Benefit of Buying a Home vs Renting a Home Talking about costs.

Let's say your family has an accumulated savings at your bank of $21,500 and wants to know what is better to buy or rent......

If you consider Buying a home 3 bedrooms, 2 bathrooms, 2 car garage in zip code 77382 for example MLS # 90943405 selling for $200,000 and as a buyer you can obtain  a fixed 30 year mortgage  at a 4.75% with 3.5 % down payment  and $5,000 seller contribution towards closing costs and Buyers closing costs of 4,500,  the expected payment including Principal, Interest, Taxes will be  $1536 approximately for $200,000 home purchase with $7,000 down payment and $4,500 in buyers closing costs.

Now if you consider Renting a similar home  3 bedrooms, 2.5 bathrooms, 2 car garage  for example MLS# 90131904 renting for $1700 per month, but your bank will pay you interest somewhere between 0.5 to 1% a year on $21,500 or $215 per year or close to $18 per month.

Let's calculate your savings if you Buy a property will be $1700(amount of rent that you were paying)-$1536(amount you are paying after buying your home)+$18(interest from the bank)= Savings of $182 per month or $2184 per year.

To properly do your job:  consult your Accountant, Lawyer, Realtor and use a Home Inspector to avoid surprises.

Thank you.

Sincerely,

Eduardo Polack

(832)-403-0150

Elite Texas Properties Realtor

pilar_eduardo@hotmail.com