(The Real Cost of Home Ownership)
$200,000 mortgage x 3.5% interest rate = $583.00
$200,000 x $1.09 tax rate = $ 1,816 per year or $151.33 per month
$60 Approximate insurance = Total monthly payment of $794.33
Even if you took the appreciation out it is still only $356 a month per 100,000
We used conservative variables here as there have been rates in the 3’s and 2% appreciation is below historical average! i.e. Dropping the interest rate to 4% adds another $30 per 100k back into the savings.
If a typical townhome is 300,000 and it rents for $1650 a month you could own it for $1856 per month out of pocket but in reality that is only $568 a month!!
Doesn’t it make sense to own?!!
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