Buying Remains 38% Cheaper than Renting!

In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers actually show that the range is an average of 5% less expensive in Orange County (CA) all the way up to 46% in Houston (TX), and 36% Nationwide! 

A recent study by GoBankingRates looked at the cost of renting vs. owing a home at the state level and concluded that in 36 states it is actually ‘a little’ or ‘a lot’ cheaper to own, represented by the two shades of blue in the map below.

One of the main reasons that owning a home has remained significantly cheaper than renting is the fact that interest rates have remained at or near historic lows. Freddie Mac reports that rates fell again last week to 3.43%.

Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989. 

How To Use Mental Mortgage Math

Let’s use a 6% interest rate as an example:

Payments - The payment for principal and interest equals about $600 on a $100,000 30-year loan. Use this as your benchmark. (Actual is $599.55.)

Principal Paid - At this rate, figure 1/10th of 1% of the loan amount each month. Example: $100,000 loan = $100 of principal paid. (Actual figure starts at $102.33, increasing with each payment.)

Interest Paid - Subtract the principal from the payment to determine the approximate cost of interest. Example: $600 payment - $100 principal = $500 interest.

As rates change all the time, call for an update on current levels, and we'll calculate a current benchmark applicable to today's markets.

Mental Mortgage Math is not meant to replace your calculator but is a great way to estimate numbers quickly on the fly. Call when you want us to do the rest.

How Do Rising Prices Impact Your Home Equity?

Yesterday, we shared the results of the latest Home Price Expectation Survey by Pulsenomics. One of the big takeaways from the survey is that over the next five years, home prices will appreciate 3.5% per year on average, and cumulatively will grow by around 18%.

So what does this mean for homeowners and their equity position?

For example, let's assume a young couple purchased and closed on a $250,000 home in January of this year. If we only look at the projected increase in the price of that home, how much equity would they earn over the next 5 yrs  Since the experts predict that home prices will increase by 4.5% this year alone, the young homeowners will have gained over $11,000 in equity in just one year. Over a five-year period, their equity will increase by over $46,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family's overall net worth.

Bottom Line

Not only is homeownership something to be proud of, it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!

Top Producing Agents in 2012

Top 100 Producing Agents of 2012

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  Congratulations to the following PRO members for being the top producing agents in Pinellas County in 2012! Keep up the great work and make 2013 a prosperous and successful year!

  1	Martha H. Thorn	Coldwell Banker Residential
  2	Dania Perry	Century 21 Jim White & Associates
  3	Alexander  Jansen	Coastal Properties Group International
  4	Rafal  Wazio	Sand Key Realty
  5	Nancy S. Leslie	RE/MAX Realtec Group Inc
  6	Gary A. Ubaldini	Keller Williams Realty
  7	Tammy Campbell-Plummer	Coldwell Banker Residential
  8	Carole W. Merritt	Coldwell Banker Residential
  9	Rhonda Sanderford & Marian YonMaguire	Smith & Associates Real Estate Inc
  10	Wendy L. Lockhart	Lockhart & Associates Real Estate LLC
  11	Sandra A. Hartmann	Realty Executives Adamo
  12	Debbie Newman & Scott Allen	Smith & Associates Real Estate Inc
  13	Clifford L. Roe	Cliff Roe Realty Inc
  14	Kenny R. Hayslett	RE/MAX Realtec Group Inc
  15	Donna B. Nettestad	RE/MAX Realtec Group Inc
  16	John E. Keller	Jack Keller Inc
  17	Peter G. Chicouris	Equity Realty of Pinellas Inc
  18	Steve Busse	Re/Max All Star
  19	Scott A. Samuels	Keller Williams St Pete Realty
  20	John H. Dietz	RE/MAX Realtec Group Inc
  21	Pat Kelly	Coldwell Banker Residential
  22	Peggy W. Naruns	Northstar Realty
  23	Marcy S. Daniels	Coldwell Banker Residential
  24	Richard K. Doyle	Richard Doyle Real Estate
  25	Lori L. Famiglietti	Keller Williams St Pete Realty
  26	Michael A. Lynch	Coldwell Banker Sun Vista
  27	Estelia M. Mesimer	Keller Williams St Pete Realty
  28	Cynthia A. Fazzini	RE/MAX Realtec Group Inc
  29	Natalie R. Barone	RE/MAX Realtec Group Inc
  30	Debi A. Balogh	Coldwell Banker Residential
  31	Terry L. Tillung PA	Coldwell Banker Residential
  32	Sandy Papadakis	RE/MAX Realtec Group Inc
  33	Raymonda  Abunassar	Coldwell Banker Residential
  34	J Matthew Brashear	Re/Max Elite Realty
  35	Dave and Maggie Smith	RE/MAX Metro
  36	John B. See	Results Real Estate Inc
  37	Thomas E. Hallis	Coldwell Banker Residential
  38	Frank Malowany	Smith & Associates Real Estate Inc
  39	Deborah L. Garrigan	Garrigan & Assoc Realty Inc
  40	Tom Smith	Coastal Properties Group International
  41	Linda Caruso	Keller Williams Realty
  42	Barbara G. Zaccaria	Coldwell Banker Residential
  43	Christopher S. Hounchell	Keller Williams St Pete Realty
  44	Kim Beiningen	Century 21 Beggins Beach Properties
  45	Dottie J. Nash	Sand Key Realty
  46	Steve J. Capen	Keller Williams St Pete Realty
  47	Kathryn Krayer Zimring	RE/MAX Metro
  48	Ronald J. Jackson	Coldwell Banker Residential
  49	David Price	Coldwell Banker Residential
  50	Peter P. Nemethy	RE/MAX Metro
  51	Debra E. Cunningham	The Debbie Cunningham Team
  52	Dean D. Ribble	Re/Max 1st Class Realty
  53	Bonnie Strickland	RE/MAX Metro
  54	Tami R. Doll	Coldwell Banker Residential
  55	Alona Dishy	Realty Executives Adamo
  56	Sandee D. Dillon-Mooney	RE/MAX Realtec Group Inc
  57	Allison  Estabrooks	Re/Max Preferred
  58	Richard W. Blake	RE/MAX Realtec Group Inc
  59	M Sam McLaughlin	RE/MAX Realtec Group Inc
  60	Julie A. Folden	Coldwell Banker Residential
  61	Gregory R. Chassin	RE/MAX Metro
  62	Cynthia Serra & Connie Lancaster	Smith & Associates Real Estate Inc
  63	Debbie Momberg & Colleen Stratton	Smith & Associates Real Estate Inc
  64	Susan Carl-Singleton	JMC Resort Properties, LLC
  65	Jacqueline B. Diaz	Keller Williams Gulfside Realty
  66	Alison D. Bearnarth	Smith & Associates Real Estate Inc
  67	David P. Grieco	Coldwell Banker Sun Vista
  68	J. David Vann	RE/MAX Metro
  69	Stephen L. Kepler	Engel & Volkers Clearwater Downtown
  70	Angela I. Morris	Keller Williams Gulf Coast Seminole
  71	R Andy Burwell Jr PA SFR	Keller Williams Gulfside Realty
  72	Kathie C. Lea e-PRO, CDPE	RE/MAX Realtec Group Inc
  73	Donna L. Miller	RE/MAX Realtec Group Inc
  74	Belinda S. Bishop	Keller Williams Gulfside Realty
  75	Retha M. Wright	Prudential Tropical Realty
  76	Carol E. Giovannoni	Re/Max Preferred
  77	Angela J. Clark	RE/MAX Realtec Group Inc
  78	Kathy Rodriguez	Florida’s Best Homes Realty LLC
  79	Thomas L. Drapp	Coldwell Banker Residential
  80	Gayle Roffis	Premier Sotheby’s International Realty
  81	Bobbie D. Kaplan	Weichert Realtors Sun Sand & Sea
  82	Tim Miles	Eagle Crest Realty
  83	David W. Swanson	Smith & Associates Real Estate
  84	Karen A. Vommaro	RE/MAX Realtec Group Inc
  85	Kevin P. Gallagher	Coldwell Banker Residential
  86	Jill Helgren	Century 21 Jim White & Associates
  87	Timothy J. Malloy	Realty Executives Suncoast
  88	Judy R. Eaves	Coldwell Banker Residential
  89	Jeffrey C. Joyner	Keller Williams St Pete Realty
  90	Scott A. McNay	RE/MAX Action First
  91	Nadine  Appelt	Keller Williams St Pete Realty
  92	Deborah Zito	Smith & Associates Real Estate Inc
  93	Garges P. Purtee	Realty Executives Homes in Florida
  94	Debra J. Nobile	Golf Host Securities Inc
  95	Luigi Kalaj	RE/MAX Realtec Group Inc
  96	Aaron & Brooke Hefte & Sarah Buns	RE/MAX Metro
  97	Marsha  Gordon	Coldwell Banker Residential
  98	Jamie L. Everett	RE/MAX Realtec Group Inc
  99	Eileen A. Bedinghaus	RE/MAX Metro
  100	Joe G. Vavricka	RE/MAX Realtec Group Inc