For about a $50,000-$75,000 house, how much will I pay per month? Is it cheaper then renting an apartment at about $700/month?
2006-09-01 09:13:44 · 7 answers · asked by I love my Chihuahua 2 in Business & Finance ➔ Renting & Real Estate
It all depends on where you live. Everyone sets a different price. Since I live near a military town, the prices are a bit steep.
2006-09-01 09:20:04 · answer #1 · answered by lilhoney31320 4 · 0⤊ 0⤋
30 years X 12 = 360 months
int 6.5% / 12 months =.542. a month
75000 payment value
474.05 a month.
to this you need to add your yearly insurance (divided by 12)
ex. 700 a year is 58 dollars a month
and your taxes
ex. 1200 a year. 100 a month
or a grand total of 700.33 a month. So though the payments are the same, you are investing in an item that should appreciate in value as the years go by. With a rental, you are flushing money down the toilet.
Wish there was a house in florida going for 75,000.
2006-09-01 16:21:35 · answer #2 · answered by jazzmin1515 1 · 1⤊ 0⤋
I was going to advice you to hold your purchase because housing market continues to slump. But, from your example, it might be ok.
With nothing down and interest only loan (resemble rent), $75,000 loan would be $500 per mothh. Might be a good buy fo ryou.
The following is an example when rent is better. Doesn't apply in your case, but you can review as an example.
Buy vs. Rent.
As housing market slump, it is easier to calculate "Rent vs. Buy" scenario. Because "appreciation" is no longer a factor.
Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it.
If interests portion of the mortgage payment is roughly equal to rent of equivalent property, then it is a decent buy.
For example, let's buy a $500,000 condo with 0% down and apply interests only loan (just like renting a place). Mortgage payment would be $3250/month. It is a bad buy, because you can enjoy same property for $2000/month.
Please note that I assume the tax benefits from home cancel out fees from home association and property tax. For more accurate calculation, consult with your CPA or accountant. But NOT your realtor, whom will say anything to get the deal to go through.
And again, if you like a particular property, then paying more may be reasonable. You are the only person who can decide how much more premium you are willing to pay.
2006-09-01 18:03:47 · answer #3 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
Buying is always better then renting!! Buying is an investment, renting is just giving someone your $$ with nothing to show for it. If you have the $$ for a down payment...BUY!
Where do you live?? $50,000 for a house??? You could never find that around here!
2006-09-01 16:20:21 · answer #4 · answered by Michelle 3 · 0⤊ 0⤋
it all depends on how much you put down, what type of financing you can get and what the taxes are in your locale. around here the payments would be around 350/mo, taxes another 200/mo, and then utilities on top of that ... and speaking of which, is it cold where you live? you'll need to add heating expenses and that depends on how large your 50-75,000 home is. good luck!
2006-09-01 16:20:09 · answer #5 · answered by barbie 3 · 1⤊ 0⤋
it depends on alot of things.. also the % intrest of the loan as well. But if you can handle it.. buying is always better. the cost of land never goes down... so if your there for acouple of year.. you will get your monies back and maybe alittle bit extra
2006-09-01 16:22:39 · answer #6 · answered by cougardame 2 · 0⤊ 0⤋
Contact a local mortgage professional or go to your bank.
2006-09-01 17:21:02 · answer #7 · answered by ? 3 · 0⤊ 0⤋