What will I get from selling our house after 10 years of a 30 year fixed loan?

Question

We are paying rent for 1800 a month for the last 5 years and we feel that we are really wasting our money . We have been offered a 300-350K for a mortgage on a fixed interest of 6.5%. Our dilema is that how much will we get back after 10 years if we bought a 300K house and sell it in 10 years time. We need the cash then to start life in another country where cost of living is lower. What will actually happen if we can only sell the house at the price we pay for it when we buy the house. We really appreciate your response very much.

Answer 1

I guess the question is, what have you lost NOW for having paid $1800/month for the past five years.....
I guess that is my Realtor talk there, but seriously, your value WILL increase unless you buy in a super high risk area like New Orleans or on a fault line or something and the place falls into the earth.
Although most of the market in the US is slower now, it is still better than getting NOTHING while renting. You have just made someone ELSE rich. You ARE paying HIS mortgage AND taxes and HE gets the tax benefit of home ownership that YOU DON'T GET NOW!!! Just for the tax benefit alone, I would own!!! Ask your mortgage broker to show you the tax benefit of home ownership!!!!
GOOD LUCK

Answer 2

If you buy at 350 and sell at 350, you'll get 350 minus the loan value at the time and other expenses. The loan value will probably have decreased by about 40k, but you may have to pay a real estate transfer tax and real estate commissions. That could eat up about 15 or 20k.

However, I seriously doubt your home will only be worth what you paid in 10 years, unless it's a mobile home. It might well be worth 500 by then.

Answer 3

You need to go see a loan officer in your area.
Real estate is a wise investment but you'll have to take a chance that the market doesn't dip when its time to sell down the road.