Where Do You Want to Live?
Things to Consider
Home Buying Guide
Rent Versus Own
Think you can't afford a new home? Let's take a closer look.
Building Equity
Nearly all of us pay a monthly housing payment. Some pay a landlord, others pay a mortgage company. In both cases that payment is building equity in the place where you live. The question is, whose equity are you building? Equity for you and your family, or for your landlord?
Doesn't it make sense to explore the option of owning your own new home? You may be surprised at the affordability.
Affordability
Many renters think that they just can't afford a new home. And they are pleasantly surprised to find that a house payment is very comparable to their monthly rent, when considering the after tax equivalent. Most of a new house payment is made up of mortgage interest and real estate taxes (up to 90% of the monthly payment is some cases).
Since these are tax deductible, the actual cost of the after tax equivalent mortgage payment is much less than you think. The exact amount is determined by your specific tax situation.
| Adj. Gross Income | $90,000 |
| Tax Bracket | 21% |
| Monthly Rent | $2,000 |
| After Tax Equivalent | $2,336 |
Sample Information to show how
affordable a New Shea Home can be
Case Studies
Let's take a look at some typical 1st time buyer case studies. These people were paying rent and considering making the move to buying a new home.
| Current Rent: | $2,400 |
| Income: | $150,000 |
| Down Payment: | $19,000 |
| Down Payment %: | 5% |
| Loan Amount: | $395,000 |
| Interest Rate: | 5.00% |
| Mortgage Payment: | $2,292 |
| 1st Year Tax Savings: | $3,923 |
Jack & Jill were both 4 years out of college and were married 2 years ago. They both had good careers but were concerned about their long-term financial future. They didn't think they could afford a new home and were uncertain about the overall market.
| Current Rent: | $1,450 |
| Income: | $70,000 |
| Down Payment: | $8,000 |
| Down Payment %: | 3.5% |
| Loan Amount: | $205,000 |
| Interest Rate: | 4.375% |
| Mortgage Payment: | $1,342 |
| 1st Year Tax Savings: | $1,335 |
As a single mom, Mary was well aware of the financial hardships of a limited income. She had a good job but was sure she was destined to pay a landlord for the foreseeable future.
| Current Rent: | $2,200 |
| Income: | $120,000 |
| Down Payment: | $15,000 |
| Down Payment %: | 5% |
| Loan Amount: | $295,000 |
| Interest Rate: | 6.125% |
| Mortgage Payment: | $2,261 |
| 1st Year Tax Savings: | $3,594 |
A job loss, mounting debt, and poor credit had Dick and Jane convinced it would be a long time before they could think about owning a home. But with the help of Shea Mortgage's Customer Plus+ program, they realized their dream in a fraction of the time they had originally expected.
Double Your Value with Shea Homes Move-In Packages
Shea Homes San Diego knows that a home is an expression of who you are. Now offering three optional move-in packages, buyers may choose the two that enhance the way they live. Do you want to reduce your out-of-pocket move-in costs? Put the latest technology at your fingertips? Or enjoy the convenience of today’s ...
Feb 24 at 4:08 AM • Shea Blog
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