The total monthly costs of paying a mortgage + HOA fees + property taxes is often less than paying rent.
Chicago, IL (PRWEB) May 11, 2015
As real estate pundits and lenders like Peoples Home Equity dissected the April unemployment report, a visible theme is that wages are not keeping up pace with rising rents and home prices.
The unemployment report released last Friday by the U.S . Bureau of Labor Statistics showed the unemployment rate fell to just 5.4% for April. While this was an improvement from the rate being at 5.5% for both February and March, some negative aspects of were noticed.
A May 8th article posted by the National Association of Realtors titled “Latest Employment Report (April 2015)” stated that “Wage growth is stuck at near 2 percent. Before the recession in 2009, wages were rising by 3.5 percent. The current wage growth therefore is not catching up with changes in housing costs. Rents are rising close to 4 percent and home prices are rising at 7.5 percent.”
Peoples Home Equity knows that first-time home buyers are very eager to stop paying their increasing rent payments and purchase a condo instead. The total monthly costs of paying a mortgage + HOA fees + property taxes is often less than paying rent. For this reason, Peoples Home Equity encourages all first-time home buyers to try and save some money from their paychecks for a down payment to purchase a home. The time is now to purchase a home; especially since both home prices and mortgage rates are rising. If prospective buyers wait too long they may find that housing is even less affordable in 1-2 years from now.
If confused on how much a monthly mortgage payment may cost, use Peoples Home Equity’s simple “Monthly Payment Calculator” to estimate the cost. The tool requires the user to input just 3 data points, loan amount, interest rate, and term of the loan. For example , a $150,000 loan size, at a 4.5% interest rate, for a 30 year period is estimated to cost as little as $760.03 per month.
If listing a property for sale and are in need of a mortgage for a new home, contact a Peoples Home Equity loan officer today at: 262-563-4026