Either Way, You’re Paying a Mortgage

Either Way, You’re Paying a Mortgage

This is an article we found through Keeping Current matters.  If you are renting or are a home owner you are paying a mortgage.  However if you are the renter than you are paying someone else's mortgage and investment.  Most of us have had to rent at one point or another.  A good exercise to do is add up your rent paid for the last 5 years...and 10 years.  That Number is the money you will never get back. 

Contact The J Team Fort Lauderdale today and schedule a home buyers consultation.  We will educate you about the buying process, provide tips to qualifying for a mortgage and solutions to most financial issues holding you back such as School Loans or Credit issues.  The J Team Fort Lauderdale believes in home ownership and is committed to help everyone find a solution to purchase a home!  954.235.3589 or vist www.JTeamFL.com

Please enjoy the article below!









Either Way, You’re Paying a Mortgage
By the KCM Crew

There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage - either your mortgage or your landlord’s.
As a paper from the Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Also, if you purchase with a 30-year fixed rate mortgage, your ‘housing expense’ is locked in over the thirty years for the most part. If you rent, the one guarantee you will have is that your rent will increase over that same thirty year time period.
As an owner, the mortgage payment is a ‘forced savings’ which will allow you to have equity in your home you can tap into later in your life. As a renter, you guarantee the landlord is the person with that equity.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting since home values and interest rates are still lower than projected.

The Difference Between A Home’s Cost vs. Price

by The KCM Crew

As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first time or repeat buyer, you must not be concerned only about price but also about the ‘long term cost’ of the home.

Let us explain.

There are many factors that influence the ‘cost’ of a home. Two of the major ones are the home’s appreciation over time, and the interest rate at which a buyer can borrow the funds necessary to purchase their home. The rate at which these two factors can change is often referred to as “The Cost of Waiting”.

What will happen in 2015?

A nationwide panel of over one hundred economists, real estate experts and investment & market strategists project that home values will appreciate by almost 4% by the end of 2015.

Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table predicts that the 30-year fixed mortgage rate will appreciate to 4.5% by the end of 2015.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:

Contact The J Team Fort Lauderdale at Keller Williams Realty today and schedule your free Home Buyers Consultation.  We will educate you about the home buying process, help you get qualified with a mortgage and conduct a needs analysis to help you find the right home for you!  Call The J Team Fort Lauderdale today at 954.235.3589 or to search Fort Lauderdale Homes now visit www.JTeamFL.com

Fannie Mae Agrees: Hire a Pro to Sell Your House

October 16 2014

Do you really need an agent to sell your house in today’s market? Here’s what Fannie Mae suggests to sellers on the Know Your Options section of their website:

“Select how you'll market and list the home (e.g., with a real estate agent or for sale by owner). There are pros and cons to each, but unless you are experienced at selling homes, it usually makes financial sense to get professional help—homes sold by agents typically sell at a higher price and spend less time on the market. An agent will also help you determine the best pricing for the house, they'll market the home, and they'll be your advocate throughout the process.”

Let’s go over the points they made:

• Homes sold by agents typically sell at a higher price
• Homes sold by agents typically spend less time on the market
• An agent will help you determine the best pricing for the house
• An agent will market the home
• An agent will be your advocate throughout the process

If Fannie Mae says using an agent probably makes sense, perhaps you should interview an agent before putting your house up for sale.

Thinking of selling yourself?  Contact The J Team today for a free questionnaire to help you decide what your best options are!  954.235.3589 or visit www.jaycermak.us