I get a BAJILLION emails from all the real estate experts telling me all about all the latest trends and generally, a lot of what I get is redundant or who REALLY has the time to read all that stuff? For some reason, one of these email headlines really caught my eye today. This article said that buying a home is more affordable than renting in 354 of the 540 U.S. counties analyzed.
So, I decided to do a little research of my own to see how true that is here. I searched the MLS for single family homes in the Lexington 29072 zip code only - both rental properties and for active listings. I searched for a minimum of 3 bedrooms, minimum of 2 bath homes with at least 1 garage space. On the rental side, the monthly rental cost was anywhere between $1150/month and $3300/month, making the average rental cost $1759 for what is available today.
I then ran the same search (3 bedrooms, 2 bath homes with at least 1 garage space in the 29072 zip code) for homes on the market for sale, as well. I searched for homes with a list price up to $180,000 and I found 78 homes active on the market! The lowest price home with those features was listed for $124,215 and the highest was priced at $180,000. Keep in mind that some of the homes that came up in my “for sale” search, had more than 3 bedrooms and 2 baths and more than 1 garage space! The average price for these homes “for sale” was $153,215.
Then, I got out my handy, dandy mortgage calculator to guesstimate what a monthly mortgage payment would be on a home selling for $150,000 with 3% down and an interest rate of 3.949%, and the monthly payment would be $1016/month! That breaks down to $690 (principal and interest), $141 (property taxes), $67 (homeowner’s insurance) and $67 (mortgage insurance). By the way, after you have around 20% equity in your home, that mortgage insurance payment goes away. By all means, a lender could fine tune all those calculations based on your credit score and the loan program(s) that you qualify for. ALSO, there are homes in Lexington that qualify for a no money down, 100% financing. This is a USDA Rural Housing Loan.
I’m convinced! It’s true! You can own a home in Lexington for less than what your rental costs would be! As always, I can help AND I can refer you to one of the lenders on my team to get you started. I am an expert at working with first time home buyers too!