As a mortgage loan officer, I frequently encounter clients grappling with one of the most significant financial decisions they'll ever make: should they buy or rent? If you’re considering purchasing a home in Pico Rivera, California, this blog is tailored for you. We’ll dive into the financials of buying versus renting a $798,000 home, utilizing a 95% conventional financing option at an estimated interest rate of 6.25% (APR 6.397%). We'll also factor in a forecasted appreciation rate of 5.53% per year over the next nine years to see which option could be more beneficial for your long-term financial health.
Home Purchase Price: $798,000
Down Payment (5%): $39,900
Loan Amount: $758,100
Interest Rate: 6.25%
APR: 6.397%
Loan Term: 30 years
Estimated Monthly Payment (Principal & Interest): $4,669
Total Monthly Housing Cost (Including Taxes, Insurance, etc.): $5,700
Estimated Monthly Rent: $3,200
While renting may seem more affordable in the short term, buying offers substantial long-term financial benefits, especially with the projected 5.53% annual appreciation in Pico Rivera. Over nine years, you could build significant equity, making homeownership a sound investment.
If you’re ready to explore homeownership or need more personalized advice, feel free to reach out. Let’s work together to make the best financial decision for your future!
David Delgado
NMLS# 349079 • Freedom Choice Lending
Office: (562) 281-6163
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The terms are based on 6.379% APR.
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