July 3, 2017
Real Estate
What is the 5-year rule?
When buying real estate, more specifically a house, the general rule is that you want, or need, to own it for at least five years in order to break even on it when or if you sell it. More experts are saying seven years, but we will discuss the “average” five-year rule.
What happens if you own it for less than 5 years?
How do you beat the 5-year rule?
Why own for five years minimum?
You are not required to listen to what the bank says you can afford. The smarter choice is to buy less than what the numbers say, get a lower payment, and have the extra money for repairs, upkeep, and maintenance. Also, paying down the mortgage, by making extra payments each month, will help you start building equity that much faster. More equity means more in your pocket when you sell your house.
Call me today at 661-979-9000 to discuss your finances and see how much house you can afford, and how much house you want to afford. Email me at [email protected] if that is easier.
Links:
Interest
http://www.ehow.com/facts_5011133_what-mortgage-rates.html
Cost of owning a home
http://www.kiplinger.com/features/archives/2007/05/homecost.html
Paying down the mortgage
http://www.ehow.com/how_2221941_pay-down-principal-mortgage.html
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