Think you can’t afford a new home? Let’s take a closer look.
Nearly all of us pay a monthly housing payment. Some pay a landlord, others pay a mortgage company. In both cases that payment is building equity in the place where you live. The question is, whose equity are you building? Equity for you and your family, or for your landlord? Doesn’t it make sense to explore the option of owning your own new home? You may be surprised at the affordability.
Many renters think that they just can’t afford a new homes. And they are pleasantly surprised to find that a house payment is very comparable to their monthly rent, when considering the after tax equivalent. Most of a new house payment is made up of mortgage interest and real estate taxes (up to 90% of the monthly payment is some cases).Since these are tax deductible, the actual cost of the after tax equivalent mortgage payment is much less than you think. The exact amount is determined by your specific tax situation.