A HOMEOUSE was left feeling trapped after her mortgage rate increased by $200.
A financial expert chimed in to expose the truth about renting versus buying a home.
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In a fit of frustration, one owner shared a video on TikTok about how her mortgage payment went up $200 between taxes and insurance.
A financial content creator (@finance_with_bella) intervened to clarify the situation and correct a housing myth.
She explained that she spoke to several people who said that buying a home was a better alternative to renting.
They believed that mortgages would remain stable and be lower than rent, which would increase.
“That’s not necessarily true,” said the expert.
She explained that due to property taxes and homeowners insurance, both mortgages and rent would increase.
“Living in the United States these days is simply expensive,” she said.
“We’ve made other states that used to be cheap expensive. Houses are just expensive.”
She encouraged homeowners to live wherever they want because, ultimately, housing is expensive and costs are sure to rise.
“I recommend you just live your life,” she said.
HOUSING DEBATE
Several in the comments section disagreed with the content creator’s sentiments.
They discovered that renting a home rather than buying a home was much more financially risky.
“This is nonsense. Your taxes will increase much more slowly than your rent. Taxes are a small portion of the total costs of a mortgage,” one wrote.
“I’ll take the extra $200 in $300-1,000 rent increases or they sell your house,” shared another.
A third user shared his opinion on rent, noting that he knew people whose rent increased by $400 in one year.
Others agreed that buying a home was more financially beneficial in the long run.
COMMISSION COSTS
Here’s what Joy Dumandan, consumer editor at The US Sun, had to say…
The dream of becoming a homeowner comes with a price.
There are unexpected costs associated with buying a home. It is better to save for additional expenses.
The biggest upfront fees are closing costs.
These are fees you must pay at the closing of your home, when the title to the property is transferred from the seller to the buyer.
The commission earned varies from state to state.
Expensive payment
A recent $418 million settlement with the National Association of Realtors (NAR) is changing Realtor commission rates.
The lawsuit alleges that the real estate industry conspired to keep broker commissions at around 5% to 6% of the home’s price.
Plaintiffs in the suit argued that commission rates advertised on a multiple listing service (MLS), a database used by agents to find homes for clients, allowed real estate agents to prioritize homes with higher rates.
Home sellers may not be aware that they could negotiate buyer’s agent compensation, which appears in the MLS, with the listing agent.
NAR did not admit any wrongdoing, but agreed to change its guidelines to make commission rates more transparent to consumers.
This could result in rates dropping 1% to 2% for home buyers and sellers.
Who pays the commission?
The seller pays the full commission at closing, but it is usually included in the price of the home.
So, for example, if a commission is 6% on a $300,000 home, that would equal $18,000, which is split between the buyer’s and seller’s agents.
A buyer may offer to pay some of the real estate agent’s fees. This strategy can be used to convince a seller to accept a buyer’s offer.
It is important to know your rights, which will be spelled out in the real estate agent contract when you sign to hire a real estate agent.
“You are at least retaining some of that money in the form of equity with a home. You get basically nothing from the rent,” commented one user.
Although renting a home represents a large financial burden, many homeowners have felt trapped by their mortgages.
One homeowner’s mortgage increased by $400 – she’s “really upset” because no one told her about the hidden fees, so now she’s trapped in her home.
Another feels trapped after his mortgage increased – one expert said: “no one teaches you this stuff” and it’s not just taxes.
This story originally appeared on The-sun.com read the full story
