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Financing in 36526 : Real Estate Advice

  • All15
  • Local Info2
  • Home Buying3
  • Home Selling5
  • Market Conditions0

Activity 2
Tue Aug 17, 2010
Yes, rates can vary from lender to lender.....I represent Wells Fargo and would be glad to offer you our services....

Best regards,
Sam Thompson
770-301-0527 ... more
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Thu Apr 30, 2009
Barry Lynn Miller J.R. answered:
This is from a Blog I have on Active Rain

Save or Borrow a down payment for purchase of Property
The numbers do not lie if you buy now it will cost you less thease numbers are based on saving over 700 per month and who can do that these days.

Information About You and the Home You Wish to Buy
Expected Period in House If You Buy Now 30 years
Estimated Property Appreciation Rate 4.00% per year
Income Tax Bracket 27%
Pre-tax Rate of Interest on Savings 5.00%
After-tax Rate of Interest on Savings 3.65%
Number of Months You Rent Before You Buy 48 months
Current Monthly Rent $650
Monthly Real Estate Taxes $55 per month
Monthly Home Owners Insurance $65 per month
Monthly Rental Insurance $35 per month
Loan Information Buy Now Save First
Purchase Price $200,000 $233,972
Down Payment $7,000 $46,794
Loan Amount $193,000 $187,178
Interest Rate 6.000% 6.500%
Loan Term (in years) 30 years 30 years
Monthly Mortgage Payment $1,157.14 $1,183.10
Monthly Mortgage Insurance Payments $154.40 $0.00
Buy Now Loan Balance Reaches 80% of Appreciated Value in Month 43
Points 1.00% 1.00%
Other Closing Costs $2,500 $3,000
Results - Assuming a 30 Year Holding Period Buy Now Save First
Cost of Rent $86,508
Cost of Renters Insurance $4,658
Cost of Lost Interest on Down Payment $13,890 $73,907
Cost of Points Net of Tax Savings $4,235 $3,550
Cost of Other Upfront Charges $7,461 $7,738
Cost of Monthly Mortgage Payments $754,856 $614,333
Cost of Monthly Mortgage Insurance Premiums $9,449 $0
Cost of Homeowners Insurance $42,402 $33,752
Cost of Property Taxes $26,192 $20,848
Less: Tax Savings on Mortgage Interest $123,322 $111,708
Less: Increase in Property Value $448,680 $414,708
Less: Reduction in Loan Balance $193,000 $137,296
Equals - Net Cost $93,482 $181,582
The Cost of Saving First Exceeds the Cost of Buying Now by: $88,100
Saving First Would be the Better Choice Only if Your Monthly Rent is Less Than: ($12)

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