Why Rent?

Renting vs Buying
In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant. The chart below shows a cost comparison for a renter and a homeowner over a seven year period.

The renter starts out paying $800 per month with annual increases of 5%
The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
After 6 years, the homeowner's payment is lower than the renter's monthly payment
With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years

Years Rent Payment Mortgage Payment Monthly Difference After Tax Savings Yearly Difference After Tax Savings

Years	Rent Payment	Mortgage Payment	Monthly Difference	After Tax Savings	Yearly Difference	After Tax Savings
1	800	1000	-200	-50	-2400	-600
2	840	1000	-160	-10	-1920	-120
3	882	1000	-118	+32	-1416	+384
4	926	1000	-74	+76	-888	+912
5	972	1000	-28	+122	-336	+1464
6	1021	1000	+21	+171	+252	+2052
7	1072	1000	+72	+222	+864	+2664
8-30			*Savings increase every year*

Loan Programs Available for First-Time Buyers
First time home buyer loans allow buyers to get into a house more easily. However, just because you’re a first time home buyer doesn’t mean you should use a first time home buyer loan. These programs have restrictions and strings attached. While they are a perfect fit for some, first time home buyer loans are the wrong choice for others.

A person’s first home purchase is a big deal. It takes time, energy, and money. To help with the money hurdle, some people use first time home buyer loans. These programs vary depending on where they’re offered, but the general idea is this: first time home buyer loans give financial assistance to qualified borrowers. They may do this in the following ways:

- Allow for a very low (or no) down payment
- Subsidize interest costs (they pay all or part of it)
- Offer grants
- Forgive loans
- Limit fees that lenders are allowed to charge
- Defer payments

Note that first time home buyer loans available to you might offer any or none of the benefits listed above. A good place to research first time home buyer loans available in Michigan is the HUD Web site on home buying programs. Visit the HUD website for more FHA information and guidelines - HUD website.

Who Gets First Time Home Buyer Loans?
As you might imagine, individuals who have never owned a home are good candidates. In addition, some programs offer first time home buyer loans to people who have not found a home within the last three years. You may have to meet certain income restrictions to qualify for a subsidized first time home buyer loan. In general, these programs try to limit benefits to people with low and moderate income levels. If you earn too much, you won’t qualify for the program. More on FHA.

FHA Loan Programs - Click Here | HUD info for Michigan - Click Here

How Much Can I Afford
There are a host of calculators available to assist you with determining how much home you can afford. check our mortgage calculator to see what feels comfortable to you. In the end, your mortgage broker can best assist you with what you can afford by going over the loan process and expenses that lenders use to calculate loan determinations.

Helping to Make Your Dream a Reality!
Finding and buying a new home should be a rewarding experience. At Signature Sotheby's International Realty, we know the search for your dream home is about more than just putting a roof over your head. It's an expression of your hopes and dreams, your lifestyle and values. It's a place to spend time with family and friends, as well as your personal retreat at the end of your day. Signature Sotheby's International Realty has been helping people find their dream home since 1967. We are proud to be your real estate partner…wherever life leads you!

Search more than 35,000 property listings throughout Southeast Michigan - Property Search

Property Search

City:

Price:

Type:

HELPFUL RESOURCES

  Mortgage Info
  Why Rent?
  Foreclosure Information
  Staging To Sell
  Property Tax Estimator
  My Closing Papers

Call us at 800-458-7356

Tradition. Expertise. Innovation.

800-458-7356 "Selling distinction since 1932"

SERVICES

INFORMATION

AGENT LOGIN: PASSWORD:

Sotheby's International Realty^® is a registered trademark licensed to Sotheby's International Realty Affiliates LLC. Each Office is independently Owned and Operated.

Signature Sotheby's International Realty fully supports the principles of the Fair Housing Act and the Equal Opportunity Act.

The information set forth on this site is based upon information which we consider reliable, but because it has been supplied by third parties, we can not represent that it is accurate or complete, and it should not be relied upon as such. The offerings are subject to errors, omissions, changes, including price, or withdrawal without notice. All dimensions are approximate and have not been verified by the selling party and can not be verified by Signature Sotheby's International Realty. It is recommended that you hire a professional in the business of determining dimensions, such as an appraiser, architect or civil engineer, to determine such information.