Your rent has a 0% return

Everybody tells me buying is too expensive right now.

They’re not wrong. Affordability is a real challenge. But renting is expensive too, and almost nobody does that math.

Pay $2,000 a month in rent and that’s $24,000 a year. Five years, $120,000. Equity built: zero. And that rent usually goes up every year.

With a fixed rate mortgage, your principal and interest stays the same for the life of the loan. Taxes and insurance can rise, but the core payment doesn’t.

I’m not saying buy anything. I’m saying run the numbers before you rule it out.

Your first home doesn’t have to be your forever home. I can almost guarantee it won’t be.

Three listings that cam across my desk this morning.

· $238,000 in Longmont. 2 bed condo, updated kitchen, one level living. $319 HOA covers water, sewer, and trash. 319 is not a lot in this market.
· $350,000 in Longmont. 3 bed townhome, finished basement, fenced yard, and per the listing no HOA or metro district tax. Hello, McFly?
· $260,000 in Boulder. 1 bed condo near CU. Top floor end unit, new appliances, balcony over the pool.

None of these is a dream home. That’s the point. A first home is a starting step, not a 30 year commitment.

You live there, pay down the loan, and use that equity for the next move.

CU parents, this one’s for you.

That Boulder condo is being marketed as a “Parents’ Weekend Special.” Think about what that means. If you’re paying for your student’s housing for four years, that’s a lot of rent checks. Some parents buy instead, let their kid live there, and sell after graduation. Sometimes that works out. Sometimes it doesn’t, once you add HOA, taxes, upkeep, and selling costs. But it deserves a real comparison, not a guess.

No 20% down? That’s not the end.

CHFA helps buyers who qualify with down payment and closing cost money. One option is a grant of up to 3% of the loan, capped at $25,000, that you never pay back.

Another is up to 4% as a second loan you repay later. Rules apply and the rate runs a bit higher, so compare the full picture.

But “I don’t have 20% down” is a reason to get answers, not a reason to quit.

Price isn’t the only lever.

Most buyers only ask for a lower price. Smart buyers also ask the seller to pay toward their loan. That money can buy down your rate for the first year or two, so early payments are lower.

The catch: the payment rises when that help ends. So the home has to work at the full payment. And don’t count on refinancing to save you. A future refinance is a maybe, not a plan.

Owning won’t win for everyone.

If the payment stretches you thin, or you’re moving in two years, keep renting. That’s a smart call too. Just make it a decision, not an assumption.

Reply with what you pay in rent and what you could put toward a purchase. I’ll bring in a lender and we’ll run the real numbers. If it doesn’t work, I’ll tell you.

Peace