If annual rent increases are pricing you out of your current home, this is for you. Let’s break down some of the (not-so) hidden costs of renting and how you could actually be saving money by investing in your own mortgage… rather than paying your landlord’s.
APPLICATION FEES
When you fill out a rental application, the property will charge you a fee of $35-$75 per person. The landlord wants to make sure you’re serious about the place and run a background check. If you’re applying to multiple places, these fees really add up. Applying for a mortgage is free, just sayin’.
SECURITY DEPOSIT
A security deposit can be anywhere from a couple hundred dollars to an entire month’s rent, due up front when you sign your lease. This money is usually refundable, but only after the property is inspected after move-out and no fixes are required. And just think, your security deposit could be your first mortgage payment!
RENT
Rent-controlled places are few and far between these days. Most rentals increase rent on a yearly basis, which definitely causes stress and anxiety waiting to hear how much the increase will be and then figuring out how to create the extra wiggle room in the budget. When you opt for a fixed-rate mortgage, you can enjoy steady payment each month, regardless of what the rental market is doing.
PET RENT
Most landlords charge a pet deposit and/or pet rent. If you’re lucky enough to get away with just a one-time deposit, it’ll set you back anywhere from $100-$500 along with your regular security deposit and will likely be refundable upon move-out, assuming there’s been no damage done. Pet rent, however, is a recurring, non-refundable fee that can cost you anywhere from $15-$50 per pet, per month. Think about it – that’s a whole bill… orr a Happy Hour with the gals. When you own your home, your four-legged BFF can live there rent-free.
So, when you break down the costs of renting, home ownership suddenly becomes a real possibility. Instead of paying your landlord’s mortgage, invest in your own!
If you’re ready to get started, put us to work and let us do the math. We’ll run a rent vs. own analysis, find out what you can comfortably afford, and help you break free from the rental trap.
Visit https://www.homespiremortgage.com/apply-now/ to apply and get started today.