Month: May 2019
Featured Community
Briarwood Aurora
Is it Buying Time? Or Should I Rent?
The median rent paid on single-family rentals through the Denver Metropolitan Area is currently $2,450 per month, which is comparable to what the mortgage payment would be on a median-priced $375,000 home with 3.5% down at today’s interest rate (including approximate taxes, homeowner’s insurance and mortgage insurance). If a buyer were to purchase that home today, within 5 years they would have a considerable amount of equity just from making their mortgage payment, not including any appreciation in value. If prices were to rise at a modest 2.0% per year (the average long-term rate of inflation) within that same 5 years, then they would have an additional $40,000 in equity just from appreciation. This scenario would result in a significant amount of total equity within 5 years and by year 3 they would most likely be able to remove any mortgage insurance from their payment, which would save another $260 per month approximately.