Rates are getting higher
Published 6:51 pm Thursday, March 29, 2018
Rates are going higher. As interest rates increase the less house you can afford each month.
Rent is also going higher. I have sold two homes because landlords raised one person’s rent to $950 while the other went to $1,300 per month. Both people bought nice homes with payments less than rent. You cannot blame the landlord because rental homes are hard to come by and rent is going up in price.
One bank in town is giving 100 percent financing. If you qualify and use this financing, a house listed at $111,700 will cost you $732 each month including taxes and insurance. The same house will rent for $950 so it does pay to own.
The homes I sold years ago for $60,000 to $75,000 are now bringing $160,000 to $225,000. Those people have had them paid for many years.
If they had rented, all that money would have gone to the landlord, so, as Dave Ramsey would say, “pay yourself first.”