Does it make more sense to use a mortgage or continue to live in rent?
While it is possible to answer this question that confuses many of us with a small account, it is quite difficult to predict what the consequences will be. What is the difference between renting and owning a house?
The only dream of the families living in rent is to live in their own homes. One of the methods that will provide this is to use housing loans; “I wonder if it is possible to use a loan and become a landlord as he pays rent.” The maturity of the housing loan and the amount to be paid by years is a definite transaction. If the borrower chooses a 10-year term, he or she decides what he / she will pay for the next 10 years.
It should not be forgotten that with the interest changes during the payment of the term, it may reduce the amount it will pay. However, the situation is slightly different for individuals living in rent. Rent increases based on inflation cannot tell you clearly the total amount you will pay. So let’s move on to a more advantageous example of whether to pay rent or use credit.
The calculation tool that you can use in your mortgage loan process,
As of February 25, the most appropriate interest rate for a 100.000 USD loan that you can use in 10 years term will be 1.01%. If we make calculations in the light of these ratios;
You would like to use a 100.000 USD loan in 10 years term for a house worth 150.000 USD. The down payment is 50.000 USD. The monthly amount you will pay is 1.441 USD and the total amount you will pay at the end of the term is 172.998 USD.
On the other hand, if you continue to rent under the same conditions, you will pay an average of 1.314 USD per month and the total amount you will pay at the end of 10 years will be 150.935 USD. This means that you will be able to have your own home with an additional $ 130 for your rent payments.
If the difference between the total payments makes you uneasy, let us note that the difference is due to interest and file charges to be paid. Note that when interest rates fall, you can refinance to reduce the total amount of payments.
It brings you the most suitable housing loan offers. It may be possible to receive loan offers at more appropriate rates than those offered on the internet for the bank and the customer, after you apply for the loan through the account.