Taking a quick step back to last week’s video and talk about building wealth! This is just another aspect of why buying a home is better than renting one. Here are a few quick quotes from the video:
“Average homeowners’ net worth is 31 times that of a renter.”
–National Association of Realtors
“Home equity is the largest single source of household wealth for most Americans.”
–U.S. Department of Housing and Urban Development
Most people just assume they can’t afford to buy a home, but before you make any rash decisions, go on to Shea Mortgage’s website and calculate everything under the sun such as:
- Your monthly payment for different loan amounts, interest rates and amortization terms
- A payment schedule which breaks down your principle and interest payments in a yearly or monthly format.
- An extra payment, to calculate how much you can save over the term of your loan by increasing your monthly payment.
- How much you can afford, which calculates your maximum mortgage amount based upon the monthly payment, interest rate and term that you enter.
- How much you can borrow, calculated based on your income, debts and desired loan terms.
- Renting vs. Owning, to estimate the benefits of owning a home as opposed to renting one.
- Fixed rate vs. ARM, which compares the difference between a fixed-rate mortgage and an adjustable-rate mortgage.
- 15-year vs. 30-year mortgage, which compares the different between a 15-year and a 30-year mortgage.
- Refinance interest savings, which estimates the benefits of refinancing.
Use each calculator tailored to your specific financial situation and you will be surprised at what you can afford!
What does equity mean? In simple terms, it is the difference between what the house is worth versus what you owe on it.
Owning a home is much different than owning a car, where cars only depreciate once you drive it off that car lot. But homes are always building wealth for homeowners, and nationally, homes have appreciated 11% since September of 2011 to September of 2012! Look at this image from the Homebuyer Seminar video, showing the calculation of what equity you earn on a $180,000 home:
Through your experiences of either renting or owning a home, what have you learned? Is it a positive or negative experience? Why? Share with a comment!
Now the question is…Where can I buy a Shea Home in Arizona to start building my home equity? We are all over the map! Here’s where to buy:
- Bridges – COMING LATE SUMMER/FALL 2013
- Brighton at Watson Estates
- Caletas at Blackstone
- Hideaway at Johnson Ranch
- Kensington at Watson Estates
- Lantana at Power Ranch
- Marbella Vineyards – COMING IN SUMMER 2013!
- Ridgeview at Johnson Ranch
- SPACES at Evans Ranch
- The Estates at Litchfield Park
- Vista Montaña