How To Save On A Mortgage Payment Whether Buying Or Selling

Dated: October 26 2017

Views: 157

How to Save on a Mortgage Payment Whether Buying or Selling

How to Save on a Mortgage Payment Whether Buying or Selling | MyKCM

In Trulia’s recent reportRent vs. Buy: Roommate Edition, they examined the impact that renting with a roommate has in determining whether it is more expensive to rent or buy. The study explains:

“Since we started keeping track in 2012, it’s been a better deal to buy than rent in America’s largest housing markets – and for much of that time it hasn’t been close.”

It then goes on to ask the question:

“But does the equation change for renters who share their rent with a roommate?”

The report reveals:

“While the standard rent vs. buy analysis reveals buying is cheaper than renting in all of the nation’s 100 largest metros, this doesn’t hold true for those choosing between renting with a roommate and buying a starter home.”

It seems obvious that sharing the cost of renting your living space by taking in a roommate dramatically decreases your housing expense (which is exactly what the report concluded), but it got us thinking.

What if you purchased a home and took in that same roommate?

The savings you would gain by adding a roommate would also occur if you purchased a home. This presents an opportunity for a list of possible purchasers. Here are two examples:

  1. The first-time buyer: As the report explains, many young adults already live with a roommate. If they purchased a new home, perhaps that roommate (or someone else) would be willing to rent a room in their new house. The rent could help offset the mortgage payment.

  2. The empty-nester seller looking to move: Their home may no longer fit their current lifestyle. They may now be looking for something a little smaller with all the bedrooms on the ground level. These families may be able to open a bedroom to an older family member (parents, aunts & uncles, etc.). This would kill two birds with one stone.

A smaller, move-down home is almost impossible to find in the current housing market. If the seller-turned-buyer takes on a tenant, they could buy a more expensive home knowing that the additional monies needed to pay the mortgage would be offset with the additional monies they receive in rent. Secondly, the older couple (ex. parents) could get a housing option that probably far surpasses anything else available to them in the current market.

Bottom Line

Considering the concept of renting a portion of your house to be able to purchase the perfect home may make sense to many families. You will need to decide if it is right for you.

Blog author image

Jennifer Dorn

Jennifer Dorn is an Associate Broker with Berkshire Hathaway HomeServices Select Realty (BHHS Select Realty) and served as the Managing Broker for both Realty World Select (RWS) and BHHS Select Realty....

Latest Blog Posts

Knowledge Is Power On The Path To Homeownership 12012020

Knowledge Is Power on the Path to HomeownershipHomeownership is on the goal list for many young adults, but sometimes it’s hard to know exactly how to get there. From understanding the homebuying

Read More

Knowledge Is Power On The Path To Homeownership

Knowledge Is Power on the Path to HomeownershipHomeownership is on the goal list for many young adults, but sometimes it’s hard to know exactly how to get there. From understanding the homebuying

Read More

5 Tips For Homebuyers Who Want To Make A Competitive Offer 11302020

5 Tips for Homebuyers Who Want to Make a Competitive OfferToday’s real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited

Read More

5 Tips For Homebuyers Who Want To Make A Competitive Offer

5 Tips for Homebuyers Who Want to Make a Competitive OfferToday’s real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited

Read More