Is renting an apartment or home really throwing money away? The reality is that during the first 5 years of home ownership you are simply paying money to the bank in the form of interest. More specifically about 80% of your monthly mortgage payments will be interest payments.
Another interesting fact is that many homeowners will move homes within their first 5 years of occupying their home. And this is usually before you start building any real equity in your home. And remember when you purchase a home you are responsible for taxes, maintenance, interest on your loan, commissions paid to real estate agents, and any applicable homeowners association fees as well.
Usually when you rent an apartment home, none of the above listed fees are placed upon the rents.
If you need some math to back up some statistics here are a few important pieces of information.
If you were to purchase a home for $300,000 and place 5% down at a 5% interest rate, after 5 yrs of mortgage payments, your total interest paid would be $69,598.00. And the principle you would have paid over that same time period would be $23,728.
Don't forget any maintenance you might have to pay over that time frame. There are many estimates of what this might be too. There is a big chance you might have earned more than that by putting that money in sound investments. Putting your eggs in one large basket has been shown that it can severely hamper your lifestyle if it goes southward.
RentXYZ helps people find apartment housing in Texas. If your searching for Carrollton apartments they can help. Other popular areas include Addison apartments
Article Source: http://EzineArticles.com/?expert=Andrew_Reichek
Another interesting fact is that many homeowners will move homes within their first 5 years of occupying their home. And this is usually before you start building any real equity in your home. And remember when you purchase a home you are responsible for taxes, maintenance, interest on your loan, commissions paid to real estate agents, and any applicable homeowners association fees as well.
Usually when you rent an apartment home, none of the above listed fees are placed upon the rents.
If you need some math to back up some statistics here are a few important pieces of information.
If you were to purchase a home for $300,000 and place 5% down at a 5% interest rate, after 5 yrs of mortgage payments, your total interest paid would be $69,598.00. And the principle you would have paid over that same time period would be $23,728.
Don't forget any maintenance you might have to pay over that time frame. There are many estimates of what this might be too. There is a big chance you might have earned more than that by putting that money in sound investments. Putting your eggs in one large basket has been shown that it can severely hamper your lifestyle if it goes southward.
RentXYZ helps people find apartment housing in Texas. If your searching for Carrollton apartments they can help. Other popular areas include Addison apartments
Article Source: http://EzineArticles.com/?expert=Andrew_Reichek
