Dave Porter

To Buy or Not to Buy a Home? That is the Question.

The Oregon landlord is allowed to increase rents in 2022 9.9%, up front 9.3% in 2021.

Let’s run an example:

You were paying $1500 in 2020 and the landlord charged you the full amount of rent increase. That would cost you $139.50 more each month, or now $1639 each month. If the landlord charged you the maximum for 2022, then your rent would go up another $162.31, now $1801 each month, a $301 increase in a period of two years.

On a $1800 mortgage payment (Principal and Interest only) at 5% APR, the loan amount would be $335,306. If rates went up 1% to 6% APR, then you would lose $25,000 in buying power to keep the same payment. 

Rates may soften again, if the inflation can be checked, however there are strong opinions that we’ll never see the rates as low as we did over the last year or so. 

Home ownership offers more than just appreciation and protection of rent increases. Buying a home can offer stability for your family and in today’s society, as much stability as we can muster at home, all the better. Home ownership allows us to garden, care for the neighbors and be involved in the community. 

Kids need a sense of belonging. Covid was (is) tough for so many. Adding having to move again and again doesn’t help. 

Don’t forget about multigenerational housing. I’m seeing more and more of it where adult children are purchasing a home with their folks to create their own family network. Sharing tasks and helping with the kids. Pooling their incomes allows them to purchase a home that offers a nice space for everyone.

If you want to know how much you can afford on a mortgage, please call me and we can do the math.

There is no cost or obligation. Allow my 40 years in lending to work for you. You owe it to yourself to know your numbers and not assume you can or can’t purchase a home.

This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Loans are subject to credit and property approval. Other limitations apply. Rates, terms and availability of programs are subject to change without notice. State disclaimer: loanDepot.com, LLC  NMLS ID 174457. www.nmlsconsumeraccess.org Licensed by the OR Division of Finance and Corporate Securities, Mortgage Lending ML-4972.| WA: Licensed by the WA State Department of Financial Institutions, Consumer Loan Company CL-174457. | ID | CA: Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act CRMLA 4131040.

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