Quote:
Originally Posted by ken0042
I hear people say that a lot, and I have to disagree.
Let's take your 250K mortgage at 5.5% interest; 25 year amortization. Your monthly payment would be $1535 per month. However the interest would be $1146; meaning $389 goes towards the principal the first month, and then slightly more each month after that.
Yes, the last few years of a mortgage a lot more goes towards principal, but I wouldn't call 1/4 of your payment "almost nothing."
Of course; having a crystal ball there may have been a better time to sell. All I was saying was for him not to look at just the selling price; but to consider all the costs and any money he would have saved. And I left condo fees out because those would be the same no matter if he owned or rented; or at least a landlord would be foolish not to consider them when figuring out how much rent to charge.
|
1535+100 (tax) +200 (condo fees) = 1835. I don't believe landlords charge condo fees.
You can probably rent a small apartment for a 1000. And you wouldn't have to see your own property lose 40K in 18 months on top of that.