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Buying an Idaho Falls home? Search all homes for sale
Today we are going to go over the numbers to determine if it’s better to rent or to buy here in Idaho Falls. If you are currently renting, or know someone who is, you should pay special attention to this. For the sake of consistency in the numbers, let’s say that we are talking about a home that costs $210,000.
With a 5% down payment, you will still need a loan of $200,000. The standard interest rate on this type of mortgage is around 4%. In addition to these costs, your property taxes would cost you $1,950 per year, with an extra $600 per year to cover insurance. This makes your principal payment $1,167 per month.
In 12 months, you would be able to take your principle balance down to $196,377 which gives you an equity buy down of $3,396 and an extra $7,350 of equity assuming a 3.5% appreciation rate. Those numbers may not mean hard cash in your pocket, but they are real.
In addition to those savings, you get tax breaks as well. You can deduct both your property taxes ($1,950) and mortgage insurance ($7,920) on your taxes, giving you $9,870 back on your taxes.
I called a few property managers to get an idea of what this home would cost per month if you were renting it, and they came to a consensus that it would be around $1,450 per month. If you were renting this home, you would be paying an extra $283 per month which adds up to $3,396 per year.
As you can see, when you buy a home as opposed to renting it, you can save up to a total of $16,582 on a $210,000 home in just your first year of homeownership!
If you don’t own a home, or know somebody else who doesn’t, these are the numbers and numbers never lie. If you have any questions for us, give us a call or send us an email. We can’t wait to hear from you!
Click here to learn more about the advantages of being a homeowner.
Click here to learn more about the advantages of being a homeowner.
