How Much Does it Cost to Rent a Home?

How Much Does it REALLY Cost to Rent a Home?

How much does it cost to rent a home? Is the thought of paying a mortgage keeping you from owning a home? If so, keep in mind that if you’re renting you ARE paying a mortgage, it just happens to be your landlord’s and not yours. This means you’re building up your landlord’s equity each time you pay your rent.

With mortgage interest rates at a historic low (for the time being), you can’t afford NOT to consider purchasing a home in lieu of renting. For example, It could potentially cost you $900-1000 per month to rent a 2 bedroom apartment or townhouse in Jacksonville NC. The same $900-100 per month could get you a brand new 3 bedroom 2 bath home with a fenced in backyard AND you may even get to pick out the colors of your counters, cabinets, light fixtures, etc!

Use the mortgage calculator to figure how much you could be saving by buying a home with an interest rate of 3.5%

DON’T FORGET TO PUT A ZERO IN THE BALLOON PAYMENT BOX!

When you rent, your property manager or landlord will most likely ask you to come up with the first and last month’s rent. Let’s pretend that your rent is $1000 per month. That’s $2,000 out of pocket you will spend, and if you have pets it will likely be another $250-350! Add in a $30-40 application fee and you might as well kiss that new pair of shoes goodbye!

When you buy a home you will need to come up with an EMD or earnest money deposit which comes back to you as a credit at the time of closing. In our market, Jacksonville, NC, it’s common to see EMD as low as $250-500. In a market where sellers are paying for buyer’s closing costs right now, this means that a buyer can quite possibly purchase a home with no money down, if using a VA or USDA loan, AND get money back at closing! And since you pay your mortgage in arrears (when you actually make the payment you are paying for the previous month), You will not have to make a mortgage payment until the month AFTER the month after you close! So if you close on your home in September, NO MORTGAGE PAYMENT UNTIL NOVEMBER!

Take a look at this comparison of cost of renting vs. buying:

How much does it cost to rent???

So How much DOES it cost to rent? Give us a call today at 910-333-6454 or visit us at www.CampLejeuneHouseHunt.com.