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Michel Delos Santos's Blog

Michel Delos Santos

Blog

Displaying blog entries 1-10 of 662

FreddieMac Mortgage Rates

by Michel Delos Santos

Freddie Mac Mortgage Rates
Mortgage rates have increased over the past 12 months.

Cleaning Gutters

by Michel Delos Santos

Cleaning gutters
Cleaning gutters is an important part of regular home maintenance.

Regular Principal Contributions

by Michel Delos Santos
 

Regular Principal Contributions
Regular principal contributions in addition to your monthly mortgage payment will save interest, build equity and shorten the term of the loan.

Changing Air Filters

by Michel Delos Santos

Changing Air Filters
If this were a test, would you make an "A" on air filters 101?

Home Protection Plan

by Michel Delos Santos

Home Protection Plan
Home protection plans can ensure the proper quality and function of the systems and appliances in your home.

Pre-Approval Confidence

by Michel Delos Santos
 

Pre-appproval confidence
There are so many benefits to getting pre-approved, it rarely makes sense to not do it.

44Times More Than a Renter

by Michel Delos Santos

 

44 Times More Than a Renter

The Federal Reserve Board's Triennial Survey of Consumer Finances recently revealed the net worth of a homeowner was $231,400 compared to $5,200 for a renter.  The net worth of homeowners increased 15% from 2013 to 2016 while renters' decreased by 5%.

Appreciation and principal reduction are the two dynamics that affect a homeowner's equity.  Each payment is applied to the interest for the previous month and the principal reduction to retire the mortgage.

A $300,000 home purchased with a $294,566 FHA mortgage at 5% for 30 years has an average monthly principal reduction $362 in the first year. Two percent appreciation would benefit the buyer by $500 a month.  In this example, the equity grows by $860 a month for the homeowner.  A tenant would have to invest $660 a month over and above the rent they're paying.

Based on the assumptions listed above, the $10,500 down payment would become approximately $85,000 of equity in seven years. Leverage and forced savings contribute to the difference in addition to the appreciation and principal reduction.

The rent paid by tenants help the landlord recoup their investment in the home and a return on their investment.  Some people say, regardless if a person rents or buys, they pay for the house they occupy.  The choice is whether to buy it for themselves or their landlord.

Check out some of the benefits using your own numbers with this fill-in-the blank Rent vs. Own.
 
 
 
 
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Cost of Waiting to Buy

by Michel Delos Santos
Cost of Waiting to Buy
Interest rates and prices are expected to continue to rise in 2019 which will result in higher payments.

Acquisition Debt

by Michel Delos Santos
 

Acquisition Debt
Acquisition debt determines the amount of mortgage interest deduction for homeowners.

Bad Advice for Buyers

by Michel Delos Santos
Bad Advice for Buyers
Everyone wants to help but there is some advice you'll want to avoid.

Displaying blog entries 1-10 of 662

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