If you live in the Denver metro area, you're probably not surprised to learn that local rentals keep going up. The average monthly rent for a 3-bedroom home in Denver hovers around $3000 /month (more or less depending on the size of home and neighborhood).
But home prices are starting to come down. Along with interest rates. We're probably never going to see rates down in the 3s or 4s like we did after the pandemic; However we are seeing them come back to relatively "normal" numbers.
Let's take a look at my listing at 13960 Grape Street in Thornton, CO. This home would have sold for about $650K back in the Spring of 2022. But today it's listed for only $515,000. It's a ranch (one story) home with 3 beds, 2 baths and a 2 car garage. There's 1746 SF on the main level and then a full unfinished basement for total SF of 3,430.
Yes, it could use a little TLC -- mostly cosmetic updates are needed. This is an amazing opportunity for new buyers to build some "sweat equity"?
What does that mean? It means that if this home had been updated with new flooring, kitchen & bathrooms, it would probably priced in the $600s. It's an opportunity for buyers to get in to a home and update as they go.
So let's take a look at the numbers for what you can BUY it for today. Rates for FHA & VA loans are currently around 5.5% (Conventional is around 6%).
- The minimum down payment for FHA is 3.5% -- So $18,025. Down payment can be in the form of a gift from a relative.
- Principal & interest: $2,820.10
- Taxes & insurance: $460.00
- PMI (private mortgage insurance): $227.78
- Total monthly payment: $3,507.88.
Chances are you're paying something close to that in RENT (for a single family home in the Denver/Boulder area).
So why not BUY?!
Be sure to check out my recent blog post about the benefits of owning vs. renting:
If you're ready to take the plunge into home ownership, contact my preferred mortgage broker, Kim Clancy, with Mindful Mortgage Group.
Sally Heldman
Broker Owner
Metro Brokers / Heldman Real Estate
303.475.4508 CELL
sally@sallyheldman.com