In this example, let’s consider a detached 3 bedroom, 2 bath, 1500 sq. ft. home, with a lot size less than 10,000. The average monthly rent for homes of this size (based on the past 120 days) is $2265. Depending upon the neighborhood, that same home size might rent for $2500 or more.
The average price to purchase a house of that size is $363,000. Using the example of 20% down, what does that look like in terms of a monthly morgtage?
72600 20% down payment
290400 conventional loan amount
$1743.69 monthly mortgage amount (includes principal, interest and taxes) based on 3.875%*. So, less than your rent would be. (*Based on 30 year fixed rate as of 2/9/12, .05% insurance and 1.25% for taxes) (more…)