Cape Coral Florida's Real Estate Guide

According to an Associated Press anaylsis of 45 metro areas, the gap between the monthly mortgage payment on an average home and the average rent has shrunk from $777 a month to just $221 over the course of the past three years. Many renters are coming to the realization that due to the lower home prices, affordable interest rates, and tax incentives, homeownership can be a reality for just a few extra dollars. This can mean the difference between cramped and comfortable for some people.

For example, let's consider a story I read recently about a musician in Phoenix was struggling to fit his belongings into his 600 square foot apartment. After doing some math, he and his wife realized that for a little over $100 more per month, they could afford to buy a home twice the size of their apartment. Additionally, by buying, they found that they could take advantage of all the various tax incentives for homeowners so they jumped at the chance to buy. This is becoming the sentiments of many renters these days. However, there are a few things to consider when determining whether buying or renting would be best for you.

First, you need to really consider whether you are ready to buy. While homeownership may be more affordable nowadays, that doesn't necessarily mean you are prepared to buy. There are a variety of costs to consider when it comes to a home purchase and it is best to be ready for any repairs or additional monthly bills that may be involved. Additionally, certain loan programs make it more affordable to buy than others. For example, if you qualify for a Veterans Administration or VA loan, there is no downpayment required and it carries a very low fixed rate. One buyer found that by using a VA loan, he was able to own a home double the size of his old apartment for $110 a month less than his rent!

If you have ever desired to own your home, it is worth taking the time to do the math and see if buying now could be right for you. You may find that with today's low prices and the right loan that you could save yourself a ton of money and enjoy the many benefits that come with owning your own home.