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Yet another life change

Depends on the rent!

I don't know about Elgin, but we bought because the monthly payments on the mortgage are lower than the rent on a comparable place. When I did the math, as long as we stayed for 5 years, it would be a better deal to buy.

But, that all depends on your loan, the local market, and your plans.

Just my $.02.

As a vet, VA rates are around 4% and my rates Veterans Land Board are 3.28 this week. Right now I'm paying 925 for a 1bd 1bath less than 600 sq ft off Howard and 35. For that I can buy a home in the 125 to 130. Right now it really is cheaper to buy. I looked to just move to a 2-2, but those are running 15-1700 a month! I could be in the 170s for that.
 
When you say cheaper to buy, are you just looking at the monthly payment? Or are you also including stuff like the closing costs, mortgage insurance, inspections, surveys, real estate agent fees, etc,...? Depending on the house, those fees and expenses can run $10-20K.

I know there are times where it does work out better to own, but just make sure you are looking at the whole cost and not just the monthly payment. Of course, each market is different, so that can make a BIG difference.
 
For my price range, 100-150 it's cheaper.
For example:
150000.00
3.28 VLB rate this week
12 payments a yr
360 months
principal and interest payments are 655.28
total interest payed over the life of the loan is 85901.44

Forgot, no pmi. Going VA. and sellers paying closing cost. Don't be fooled by the fake lender made up APR rate. It's a bogus rate.

Given taxes 3-4k a yr (we'll go high at 4) that's 334 a month.
Insurance high at 100

So less that 1100 a month for a 150 thousand around 1500 sqft. That apt in Austin metro runs (in a good area) 1500 to over 2000. The closer to Austin the higher.

A home warranty that cost just a couple of hundred will cover the a/c and appliances for the first yr. My mom renewed hers for a little over 300. Just the savings alone, say the low end of 1500 for rent is a savings of 400x12= 4800. That would SHOULD cover any issues that might come up down the road. And that's at the high end of my price point. I'm looking at the 130s which would save almost 100 bucks.
My electric this month is over 100 bucks for just a 550 sqft apt. So the bills will almost be a wash. For 1200 sqft home taxes have been averaging 300 a month.

It really is cheaper. And with 100+ people moving to the Austin metro daily, the rent isn't going down any time soon.

I've looked into this for a while. It's what I do for a living. I was going to wait until next yr when my lease was up, but with my son moving back I am having to move faster.
 
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Just my .02 on the APRs.

From google "The interest rate refers to the annual cost of a loan to a borrower and is expressed as a percentage. The interest rate does not include fees charged for the loan. The APR is the annual cost of a loan to a borrower -- including fees."

The APR is a rate that the lenders came up with as a way to swing a buyer to go different ways for financing. Say your loan has a rate of 3%, but with the fees the APR is 3.5%. But hey, if you go with these guys the APR is lower because there are less fees. They do that because they sell the loan to the people that pay the most to THEM. For that lower APR you don't get the best interest rate. They try to do that with us all the time. Our rate will be a full point lower than theirs, but the APR is higher because they charge the vet more in fees to produce the loan. They show them a straight VA loan at a point higher but the APR is lower do to less fees.

The VLB buys these loans from the mortgage companies at 4%. They can get 6% on the open market. So there is a huge push to get vets to change the loan. In the end, your total out of pocket for a 30 yr loan is way higher for a straight VA than a VLB because the only rate that really matters is the interest rate and it's higher.

Plus, the APR is based on the fees added to the loan. If you make simple principle only payments to that loan you will lower the APR. Your APR can't be lower than your interest rate. That's why I say it's a B S lender rate. It's just to trick you into something you don't need. It's a short term fix to a long term problem. Pay a little more up front but save big on the back.

The difference in total interest payed over a 30 yr loan on 130000 at 3% is 67310.00, at 4% it's 93430.00. You'd save 26210. I'd spend 3k more in fees up front to say 26 later.
 
Break even can can as little as 1, or as many as 20. You'll have to do some research to see where you fit. For the vast majority of people who can get a mortgage (and successfully make continuous payments), buying often has a better return on investment (ROI) than renting.

On a house I owned in North Dakota, we broke even after one year. Here in Cibolo, we broke even at just under 2.

If you can swing a 20 or even 15 year loan, do it. When you have extra cash at the end of the month (and your "rainy day" fund isn't depleted), put it on the mortgage. Any extra you pay MUST go straight to principle.

It's the interest that will kill you. Shop around for the lowest rate. It's worth some time, and a very good agent.
 
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Hope it all works out. I'm kind of following a little here and there, mostly because I am possibly going to be moving down to the Northern part of Austin for work and I have been checking places out on Zillow. You are right about the rent vs own argument in that area. Looks like I could buy a decent house and still include insurance for half to 2/3 of what the rent would be. I'm thinking of looking around Elgin and the surrounding area but I am thinking I might just go ahead and rent a house so I will have a decent sized garage to work in and not have to constantly play musical bikes from one garage to another. If I was a little more certain and a lot less crotchety I might suggest a room-mate situation but unfortunately I am still at least a 2 to 3 weeks away from a solid answer and it's anyone's guess which way it will go at this time. Maybe if things have not worked out for you in the next couple of weeks the idea might be something to revisit. I figure a decent 3 bedroom house with rent split and a place for bikes might allow for everyone's rent to go down a little... :scratch:
 
If I see anything around here(Elgin) that looks decent in your price range, I'll let you know. I also know a couple of local realtors if you would like to get them looking for you as well, it might be worth a shot.
 
check out lands of Texas .com it lists city or county in town and out. I found my place on it.
 
Hope it all works out. I'm kind of following a little here and there, mostly because I am possibly going to be moving down to the Northern part of Austin for work and I have been checking places out on Zillow. You are right about the rent vs own argument in that area. Looks like I could buy a decent house and still include insurance for half to 2/3 of what the rent would be. I'm thinking of looking around Elgin and the surrounding area but I am thinking I might just go ahead and rent a house so I will have a decent sized garage to work in and not have to constantly play musical bikes from one garage to another. If I was a little more certain and a lot less crotchety I might suggest a room-mate situation but unfortunately I am still at least a 2 to 3 weeks away from a solid answer and it's anyone's guess which way it will go at this time. Maybe if things have not worked out for you in the next couple of weeks the idea might be something to revisit. I figure a decent 3 bedroom house with rent split and a place for bikes might allow for everyone's rent to go down a little... :scratch:

NOOOOOO! LOL, no roomates for me. I did that in my 20s and learned the hard way. There was only one time that worked into my favor, but that's a tell over a cold one. And it only lasted 6 mons.;-)
 
If I see anything around here(Elgin) that looks decent in your price range, I'll let you know. I also know a couple of local realtors if you would like to get them looking for you as well, it might be worth a shot.

Thanks, I have one now. Referral from a friend Wray Rivera out of Bastrop. Does a lot in the area.
 
Prayers offered. And encourage him to forgive her, when the time's right.
 
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