Buy vs. Rent in pico rivera, CA: Is Buying a $798,000 Home the Right Move?

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.

Buying Scenario: Investing in a Home in Pico Rivera

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

Financial Breakdown Over 9 Years:

  • Total Mortgage Payments: $505,932
  • Property Taxes, Insurance, and Other Costs: $176,400
  • Total Cost of Homeownership: $682,332

Appreciation and Equity:

  • Annual Appreciation Rate: 5.53%
  • Estimated Home Value After 9 Years: $1,327,000
  • Estimated Equity After 9 Years: $675,000 (after subtracting the remaining mortgage balance)

Renting Scenario: Leasing a Similar Home in Pico Rivera

Estimated Monthly Rent: $3,200

Financial Breakdown Over 9 Years:

  • Total Rent Payments: $345,600
  • Potential Savings from Renting (Invested at 5% Interest): Approximately $40,000 in potential gains

Equity and Long-Term Benefits:

  • Equity Built: $0
  • Ownership: No ownership or property appreciation
  • Flexibility: Renting offers more flexibility without the commitment of a mortgage, but with no long-term financial return.


Conclusion: Should You Buy or Rent in Anaheim?

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

www.FreedomChoiceLending.com

Click Here To schedule a 15 minute loan consultation

The terms are based on 6.379% APR.


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