After reading my Deeds for Lease post last week, Chris Thorman with Software Advise contacted me to let me know he had written an article that outlines the Deed for Lease program from the borrower, tenant, and property management perspective. Click here to read the full article: http://www.softwareadvice.com/articles/property-management/breaking-down-fannie-maes-deed-for-lease-program-1111609/
He provides an analysis for homeowners to see if this program will be beneficial to them. Since Phoenix was not included in his metro city breakdown, I asked him to provide these numbers to me to share with you. To follow is what he came up with:
2006 Phoenix metro area average single family home price: $268,200
Average mortgage rate as of Dec. 2006: 6.18%
Monthly mortgage rate: $1639
Median rental rate for a two bedroom in Phoenix: $852
Immediate monthly savings: $787
If you have additional questions, Chris can be reached by phone at (512) 364-0118 or by e-mail at chris@softwareadvice.com
One problem I see with these numbers is the rental rate for a 2 bedroom. Many people who are behind are in a 3 bedroom or larger, so the “immediate savings” may be misleading if someone doesn’t read it carefully.