Equity- Metro Detroit home buyer tips
| Who cares about equity? I’m renting it makes more sense. I heard that from a guy who was renting. When you buy a home every payment you make builds equity in your home. MOST PEOPLE ARE NOT GOOD SAVERS. In fact a home is usually the biggest asset a person has when they near retirement. What’s that mean to you? Well if you rent you most likely won’t put that money away. When you buy a home it is like a forced savings plan. Each month a portion of your payment goes towards the principal. So every month the amount you owe on the house goes down. At first it isn’t much. But as time goes on the amount that goes to the principal grows. The general amount you save is staggering sometimes. In the first 10 years you save about 22% of the loan amount. Over 20 years you will have saved over 55% of the loan amount. At thirty years you will saved $250,000 if you bought a $250,000 home. That’s $8,333 a year. Would you save $8,333 a year plus pay rent? I don’t think so. So you build a life and build equity when you buy a home. Who knows you may want to sell the house and buy a sail boat to sail around the world when you retire. Or you can take the money to buy a condo in Arizona or Florida. It’s your money do what you want with it. Farmington Hills MI foreclosures Dear Mr. Banker a Metro Detroit short sale story Novi homes for sale and recent sold home info [wnt_grid keyid=”1″ title=”Livonia MI homes for sale” maptype=”disabled” ownertype=”all” paginated=”true” sortoptions=”true” maxresults=”50″ search_mode=”form” primarysearchtype=”active” searchtype=”city” state=”MI” single_family=”y” condo=”y” min_price=”150000″ max_price=”1000000000″ listing_status=”Active” county=”Wayne” city=”Livonia” /]
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