Renters, You're STILL Paying A Mortgage
There are a ton of different reasons people put off buying a house:
- They want to save up for a down payment.
- They want to save money by avoiding a mortgage.
- They want to rent until it's "the right time to buy."
While these may seem like valid reasons at first, further scrutiny reveals that they have some underlying flaws. The MacGuire Team is here to help you identify why some of these reasons might not be such a great excuse to wait to buy a house in Colorado Springs after all.
"I Want To Save For A Down Payment."
Traditionally, homeowners had to have a 20% down payment in order to buy a house. Some people still assume this to be true, but the reality is that buyers can now purchase home with as little as 10%, 5%, 3%, or even (in some cases) 0% down.
It's worth mentioning that there is downside to such low down payments - the less money you spend upfront, the greater your total loan amount will be. The greater your total loan amount, the more you will spend in interest overall. We recommend that you still put 20% (or more) down if you can afford to, but it's important to realize that you don't have to have this kind of money on hand in order to buy.
"I Want To Save Money By Avoiding A Mortgage."
Mortgage payments can be daunting, especially for first-time homebuyers. They may want to save themselves from the burden of a mortgage by continuing to rent, but some of these renters fail to realize an important fact:
As a renter, you're still paying a mortgage!
The mortgage is in your landlord's name, but you can be confident that your monthly rent payment is covering your landlord's mortgage payment - and probably then some. Renting a house isn't saving you from having to make a mortgage payment, but it is keeping you from the benefits associated with homeownership, such as building equity.
"I'm Just Renting Until It's The Right Time To Buy."
Let me let you in on a little secret: the right time to buy real estate in Colorado Springs is RIGHT NOW - and I'm not just saying that because I'm a real estate agent. Keeping Current Matters published a very interesting article describing the Renter's Trap, a phenomenon where renters get stuck by trying to wait until the right time to buy. Here's what they found:
- Over the last five years, rent costs rose 15%, while renters' income only rose 11%.
- The average renter spends 30% of their income on housing.
- The average homeowner spends 15% of their income on housing.
These numbers indicate that by waiting to buy, you risk losing more of your money to increased rent costs - which makes it even harder to save money to buy. Rather than risking being caught in the renter's trap, it's better to take advantage of the low down payment options and buy a house sooner rather than later.
Ready To Buy? Contact Me!
How can you avoid wasting time saving for an unnecessarily high down payment, paying for someone else's mortgage, and/or getting caught in the Renter's Trap? By taking the plunge and buying a home in Colorado Springs today! If you are interested in viewing some of the properties for sale in Colorado Springs, contact me and my team. We would love to be your #1 real estate resource!
Mike@BuyWithMike.com
Mike MacGuire
Colorado Springs Real Estate Agent
The MacGuire Team
6760 Corporate Dr
Ste 300
Colorado Springs, CO 80919
719-536-4324 or 719-660-6793
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