Yesterday I was looking for information on the web, I came a cross a webpage www.ginniemae.govBuying vs. Renting calculator and looked at it. There I found a Buying vs. Renting calculator, which I had to try out. The results of my calculations were at least extremely surprising, buying a low priced home in Sanford, FL versus renting the exact same model of a home, saves you $85,363 over a 10 year period.  Let me explain what I did, I took my listing at 2418 Chase Ave, Sanford, FL vs. 2541 El Capitan Dr. Sanford, FL both 1,175 sq. ft. homes with 3 bedrooms, 2 bathrooms and 1 car garage (exact same floor plan and the same features). Chase is offered for sale for $124,999 and El Capitan is rented for $950, I used FHA loan with 3.5% down payment and fixed 5.5% interest for 30 years. Than I assumed the fact that the homeowner would own the home for 10 years, pay 1% in property taxes and the value of the home would increase 2% per. year.  Yes, this government calculator told me that the homebuyer would save $85,363 if he sold the home after 10 years.  I was expecting some saving but this high amount, was a surprise for me. Then I wanted to find out how long it would take to save the total purchase price and that looks to be around 13.2 years.

 

Click on the Ginnie Mae logo and try out the calculator your self.

Note: The calculator  that I talk about above uses these items in its calculations: private mortgage insurance, homeowner's insurance cost, loan closing cost, cost of selling a home, property tax, homeowner's tax saving, and rent increases. Calculator results are estimates only.

Contact Erna and Petur Sigurdsson, Realtors at The Viking Team, Realty at 321-263-5096 for help buying or selling a home in Longwood, Lake Mary, Altamonte Springs, Sanford, Seminole and Orange County and the surrounding areas of Central Florida. To Search For Homes For Sale in Central Florida Click Here.